Trend Strength

Stability/“cleanliness” of a trend

Description

Trend strength tries to measure how consistent a trend has been over roughly the last 90 days.

A steady rise without large back-and-forth moves looks “stronger” than a choppy path, even if the end return is similar.

The scale ranges from −1 to +1: near +1 indicates a stable uptrend, near −1 a stable downtrend. Values around 0 suggest sideways/unclear.

Source

Calculation

1) Look at the last 90 days (N = 90) and index time points: t_i = i for i = 1..N.
2) y_i = ln(Price_i)
3) trend_strength = corr(t, y)
4) clip(trend_strength, −1, +1).

Interpretation

Higher is better (more upward trend stability).
Very low values can mean a clear downtrend — or high volatility with a falling underlying trend.

Ranking

Loading ranking …