Predictive Trendline Slopes

It's always nice to know when the TDI has changed to a positive daily trend. Even more reassuring is when a positive TDI weekly trend emerges since it clearly has more power, duration and greater profit possibilities.

These trends involve positive trendline slopes which can be predictive in nature.

Trendline Slope Requirements

Many draw trendlines on their charts to guide their thinking. I am not a fan of trendlines per se except in the context of primary time frame trends. So how can one tell if a positive daily trend slope will migrate to a positive weekly trend result?

The requirements that must be present are: 
  • A base pattern
  • A positive TDI daily time frame trend
  • A nice upward trendline slope (4-8 weeks or more) 
These were discussed in Premiere Trading Indicators (Part 2 & 7). 

The main objective is to take advantage of any positive weekly trend, should it develop.

Chart Examples

For example, here is a historical daily chart of TPLM which was used several times in the Premiere Trading Indicators series. 

Note that a base pattern was present, a positive TDI daily trend emerged 6/4/13 and the trendline slope was also encouraging. There was no other evidence of an impending weekly change.

TPLM - TDI Daily


Incidentally, these trendline slopes (and their degree) do have force, mass and energy but that is a subject for another day. 

Predictive Changes

But are these base patterns, daily trend changes and slopes predictive for a weekly trend to develop? If so, how?

By simply converting the existing daily rising trendline chart to a weekly trendline chart, the right end of this upsloping weekly trendline now becomes predictive and identifies an area where the weekly TDI trend may emerge even before this vital trend change becomes evident!

Results? See the chart below. A positive weekly trend emerged 6/14/13 and continued to mid October.

TPLM - TDI Weekly


A wider weekly chart for TPLM below covers both the first example above together with a second similar TDI daily trend change on 4/14/14 with a weekly TDI trend change emerging 4/17/14. You can see the subsequent results.

TPLM - TDI Weekly (wider view)


And isolated example? No, it happens all the time in strong trending stocks.

Here are weekly trendline charts of two other companies with several similar daily to weekly predictive slope migration results.

Due to some larger degree slopes, many trendlines were (in advance) pointing to the area of the future TDI weekly trend change.

SONS - TDI Weekly


PZE - TDI Weekly


Impressive results indeed and a pure trendline slope to success!

7/21/14

Related Reading:
Premiere Trading Indicators (Parts 2 & 7)

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