Trend Quality Study

By Samantha Baltodano

TL;DR:

The Trend Quality study is a trend-analyzing indicator that evaluates the strength of important trends by plotting a histogram showing the ratio of trend to noise. It can help identify strong uptrends, downtrends, and non-trending conditions.

What Is the Trend Quality Study?

The Trend Quality study is another representation of Trend-Noise Balance technical indicator. It plots a histogram showing the ratio of trend to noise calculated with Trend-Noise Balance on trend sections suggested by Trend Periods study.

The approach reveals congestion and trending periods of the price movement and focuses on the most important trends, evaluating their strength in the process.

High positive values suggest strong uptrend, low negative values signify strong downtrend, and values fluctuating around the zero level indicate that trend and noise are in equilibrium, i.e., non-trending conditions might be present.

Summary

• The Trend Quality study is a representation of the Trend-Noise Balance indicator
• It shows the ratio of trend to noise in histogram form, using data from the Trend-Noise Balance and Trend Periods studies
• High positive values indicate strong uptrend, low negative values indicate strong downtrend, and values around 0 suggest trend and noise are in equilibrium (non-trending conditions)

Trend Quality is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.

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