HLC Trend Confirmation with Two Moving-Average Lines
Summary
The HLC Trend indicator is described as a confirmation tool based on a crossover between two lines. A buy signal occurs when the long line crosses above the short line and closes above it; a sell signal occurs when the short line crosses above the long line and closes above it. The document identifies the lines by color, with white for the long line and red for the short line.
The inputs are the moving-average method and separate periods for high, low, and close. Exponential moving averages are said to be common, while other averaging methods may also be used. The source does not explain the line calculations in detail, provide chart examples, specify how signals should be combined with other rules, or report test results. It therefore outlines crossover interpretation and configurable inputs, but leaves parameter selection, market suitability, exits, and risk management to the user. A crossover description alone does not establish predictive value.
Key ideas
- The indicator confirms trends using a crossover between two lines.
- A buy signal is defined by the long line crossing and closing above the short line.
- A sell signal is defined by the short line crossing and closing above the long line.
- Inputs include the moving-average method and periods for high, low, and close.
- Exponential averages are common, but other averaging methods may be used.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.