The trend quality indicator is one of the most important parts of technical and analytical analysis. This indicator is used to filter out all the wrong trading points and tell the right time for trade.
Trend Quality Indicator
This Trend Quality Indicator tells the right time for market trading. During trading, the trader faces a problem that how can they find an accurate time period? This is a tough thing because every phase has different advantages and disadvantages. Here may be the short time trade can give you long benefit but maybe it includes a large number of risks.
Working of Trend Quality Indicator
The positive and negative directions can be defined as uptrend and downtrend. It means its value becomes up when it displays profit and also moves down when it shows a loss in the market trends. The trending value moves around the zero level. It moves up or down on the basis of trend direction.
When the directions move down then its means that there are chances of a downtrend that can cause loss. The down condition occurs when the Trend Quality Indicator value becomes negative.
When the directions of this indicator move up it means that the trend is going to up in profit. This creates a trend-up condition.