Fusion-Trend Indicator
CMT Association, Inc.
Advancing the discipline of technical analysis for nearly 50 years
There is no Holy Grail indicator for Trend identification, but I have tried to create an Indicator which can accurately identify Up-trending, sideways, and down trending Markets using a combination of multiple indicators as defined below. The typical time horizon of trend using these parameters is 6 months and the change of trend takes 2-3 months.
The following sub section explains the functions and indicators used in Fusion Trend calculation:?
RSI
RSI (Relative Strength Index) measures the speed and magnitude of a security's recent price changes to evaluate momentum and also overvalued or undervalued conditions in the price of that security. I have used 28 period RSI.
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ADX
ADX (Average Directional Index) measures the strength of trend over time regardless of direction. The other two output parameters PDI (Positive Direction Index) and
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