The Trend Bible

Research Results  Short and Long Term Trends

Stocks in rising trends have continued upwards, more so than the market, in short, medium long and long term trends. Trends in Investtechs short term and medium long term charts have given stronger signals than trends in the long term charts.

Research Results Short and Long Term Trends

Figure 1: Short term. Average price development for stocks in rising and falling trends in Investtechs short term technical charts.



Figure 2: Long term. Average price development for stocks in rising and falling trends in Investtechs long term technical charts.



Relative return, stocks in rising trends Norway Sweden Denmark Finland Weighted average
Short term 2.4 ppt 1.7 ppt 1.9 ppt 0.9 ppt 1.9 ppt
Medium long term 2.3 ppt 1.5 ppt 2.3 ppt 0.2 ppt 1.8 ppt
Long term 1.3 ppt 0.4 ppt 1.7 ppt -0.6 ppt 0.8 ppt

Relative return, stocks in falling trends Norway Sweden Denmark Finland Weighted average
Short term -2.7 ppt -1.7 ppt -3.1 ppt -1.8 ppt -2.2 ppt
Medium long term -3.2 ppt -2.0 ppt -4.9 ppt -2.0 ppt -2.8 ppt
Long term -1.5 ppt -0.5 ppt -3.0 ppt +0.4 ppt -1.2 ppt

ppt: percentage points

The charts and table above show that stocks in rising trends have continued upwards, more so than the market, for short, medium long and long term trends. The rise is most significant for the short term and medium long term tends, but also the long term charts show significant positive covariation between rising trend and excess return in three months.

Falling trends give a good indicator of negative excess return in the short, medium long and long term. The connection is clearer for short and medium term, also significant in the long term.

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The Trend Bible was written in 2016 by Investtechs Head of Research Mr. Geir Linlkken. The research team behind the Trend Bible also consists of Senior Researchers Asbjrn Taugbl and Fredrik Tyvand.

The Trend Bible - Start Page

Investtech has worked on research into behavioural finance and technical and quantitative stock analysis since 1997. The company has developed an analysis system that identifies trends, support and resistance, formations and volume patterns in stock prices, and uses these to generate buy and sell signals. Investtech uses advanced mathematical algorithms and statistical methods in computer programmes and online subscription services.

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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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