Trend Continuation Factor: Comparing Positive and Negative ROC Momentum

Summary

The Trend Continuation Factor is a two-line oscillator intended to show trend direction and the persistence of recent momentum. It starts with one-period rate of change, separates positive and negative moves, and sums their contributions across a lookback window. One line represents positive movement and the other negative movement; their crossings are proposed as potential trade signals, while their relative behavior can help monitor trend continuation. The described example uses a summation period of 35.

The document supplies an indicator formula but no chart, backtest statistics, or evidence that the crossover rule is profitable. It does not specify markets, timeframes, entry execution, exits, or risk sizing, so the signal should be treated as an indicator concept requiring independent testing. Most of the remaining text concerns the source site's privacy notice rather than trading methodology.

Key ideas

• The indicator derives two series from positive and negative one-period rate-of-change movements.\nIt aggregates those movements over a summation window to depict opposing momentum.\nCrossovers between the two lines are suggested as possible trade signals.\nThe document offers no performance results or trading rules for exits and risk sizing.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.