Written by:
Patrick Mikula CTA
Mikula Forecasting Company
www.MikulaForecasting.com
support@MikulaForecasting.com
Copyright © 2009 by Patrick Mikula All Rights Reserved
The Trend Tracker is a MarketWarrior indicator that identifies if the trend is up or down. On the chart below, the Trend Tracker will color the bars blue if the trend is up and orange if the trend is down. This chart shows daily data for interest rates. The interest rate is the Globex Eurodollar futures contract. In this market the trend turned up almost a year ago in early July 2008. There was a large drop down for a single day at point “A” but the Trend Tracker made the correct call and kept the trend up.
Trend Tracker and interest rates
On the chart below, the price fell from point C to point D. The Trend Tracker again made the correct call and kept the trend up. Toward the end of this chart, the Trend Tracker temporarily turned the trend down coloring the bars orange or red. The final four bars on this chart show the Trend tracker has turned the trend back up coloring the bars blue. This indicates the market’s year long uptrend is over and the interest rate markets are now entering a choppy sideways phase of market action.
More Trend Tracker
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