Trend Continuation Factor Zero-Crossing Signals
Summary
The document presents the Trend Continuation Factor as a directional indicator with separate positive and negative readings. Positive TCF+ values are described as evidence of a strong upward trend, while positive TCF− values indicate a strong downward trend. It proposes entering long when TCF+ crosses above zero and entering short when TCF− crosses above zero.
The readings cannot both remain positive at the same time, while both may be negative during consolidation or when a clear trend is absent. These rules give a basic way to interpret the indicator’s color and zero-line crossings, but the document does not explain the calculation, specify exit or position-sizing rules, or provide backtest results. It offers no evidence on performance across instruments or market conditions, so the entry suggestions require independent testing and risk controls before practical use.
Key ideas
- TCF+ and TCF− represent upward and downward trend strength, respectively.
- A positive TCF+ zero crossing is proposed as a long-entry signal.
- A positive TCF− zero crossing is proposed as a short-entry signal.
- Both readings may be negative during consolidation, and the document provides no validation or exit rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.