Trend Confirmation Lines

Confirm bull trends or bear trends with trend confirmation lines.

The solid Trend Line confirms buy/sell signals; the dotted line is the long-term moving average.

Let's look at the above picture, which shows how the solid Trend Line can be used with the Algo buy/sell signals.

At the first Algo sell signal, the Trend Line is still strong and green, indicating a bull trend, and the Algo switches back to Buy shortly after.

However, the Trend Line switches to red at the second Algo sell signal, indicating a bear trend, and holds.

By looking at the Trend Line in conjunction with the Algo buy/sell signals, we can better identify "false" or "temporary" signals.