Trend Analyzer (TA)

As its name suggests, its purpose is to allow a thorough analysis of the current trend. It is presented as a histogram and has different colors representing the state of a security's movement:

• Green for Bullish

• Orange for Incertitude

• Red for Bearish.

In the background, it displays its status on the two times and four-times higher timeframes for a more straightforward multi-timeframe analysis.

• Above is the TA in timeframe *2

• Below is the TA in timeframe *4

Finally, it provides divergences based on its value which are much more accurate than what the RSI or Stochastic can provide.

Reading

Traditionally, a MAC value of 80 or higher indicates an entry into the overbought zone. A reading of -80 or lower indicates an oversold entry condition, and a reading between -15 and +15 is dangerous.

The MAC will rise as the trend is bullish and will fall when the trend is bearish.

When TA crosses below the 0 value, we consider the bullish trend fully exhausted, and when it crosses over the 0 value, we consider the bearish trend fully exhausted.

It is not because TA is above 0 that the trend is necessarily bullish. If TA has been falling for several candles and is heading toward the 0 value, the downtrend has already started!