Analysis

My favourite indicator is Trend


By Geir Linløkken, Head of Research and Analysis


The Norwegian business newspaper Finansavisen asked Investtech’s Head of Research and Analysis, Mr. Geir Linløkken, which is his favourite indicator. Which indicator is in a league of its own, which you would choose if you could only use one tool?

This was Mr. Linløkken’s reply:

Simple: my favourite indicator is Trend!

The Trend is by far the most important indicator in the stock market. Rising trends indicate that the company or the market is experiencing positive development and that buy interest among investors is increasing.

Investtech has worked on quantitative and technical stock analysis since 1998. Trend analysis has been central to our analyses and recommendations to private and professional investors since the beginning. A research report we did on 14 years of data from the Oslo Stock Exchange showed that:

  • stocks in rising trends rose on average by 2.7 percent the following month
  • stocks in falling trends fell on average by 1.1 percent the following month

The report is based on 3,747 signals from stocks that entered a rising trend and 2,792 signals from stocks that entered a falling trend.

Trend is an indicator it’s easy to follow. Every day Investtech’s computers identify the qualitatively best trend for each stock. Stocks in rising trends should be bought and stocks in falling trends should be sold.

The development of stocks that entered rising and falling trends from five days before the signal was triggered until 22 days (one month) after the signal was triggered.

The Finansavisen published an excerpt in an article called «The favourite tools of the professionals» (“Proffenes favorittverktøy”) on Saturday May 11, 2013.

Written by

Geir Linløkken
Head of Research and Analysis
at Investtech

Every day Investtech's computers identify the qualitatively best trend for each stock. The trends are drawn in the charts available to our subsribers. Three trends are identified; short, medium and long term. Stocks that recently entered a rising trend trigger a Trend signal. An overview of stocks that triggered trend signals is found in the list Trend signals, avilable to subscribers from the left hand menu. The stocks in this list are identified by the same criteria as the stocks in the research report.

Quick link: Trend signals (subscription required)

Quick link: Research report on Trend signals


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"Investtech analyses the psychology of the market and gives concrete trading suggestions every day."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.


Investtech guarantees neither the entirety nor accuracy of the analyses. Any consequent exposure related to the advice / signals which emerge in the analyses is completely and entirely at the investors own expense and risk. Investtech is not responsible for any loss, either directly or indirectly, which arises as a result of the use of Investtechs analyses. Details of any arising conflicts of interest will always appear in the investment recommendations. Further information about Investtechs analyses can be found here disclaimer. The content provided by Investtech.com is NOT SEC or FSA regulated and is therefore not intended for US or UK consumers.

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