Trend identification is arguably the most important concept in technical analysis. Being able to recognize the directional move of the price of a security, sector, index over a sustained period allows the investor to participate alongside a herd of investors or the positioning of large asset managers or both as they pile into or rush out of an investment. GoNoGo Trend® helps analysts, traders, and portfolio managers understand the direction and continuity of a trend of any security within any asset class observed over any timeframe.
By blending objective, widely proven statistical measurements together with the foundational principles of technical analysis, the GoNoGo Trend® indicator colors the price action of any security according to the strength of its trend. Free from the clutter of many technical charts, the GoNoGo Trend indicator is easy to interpret. It paints the price bars bright blue when its unique mix of inputs signal the strongest bullish environment. When slightly less bullish, the color turns to aqua. This can happen at the start of a new trend, or after bright blue bars, indicating that the trend may be weakening. The amber bars represent uncertainty, often appearing in the transition from bull trend to bear trend and vice versa. The lower intensity bearish color is pink, and the darker purple appears when the bearish trend intensifies. The chart below is of the S&P500 depicted with the GoNoGo Trend indicator on a daily bar chart.
For a 5 minute explanation of how the GoNoGo Trend was developed, check out this video from Alex Cole: