Oslo Børs
Stockholmsbörsen
Københavns Fondsbørs
Investeringsforeninger
Helsingin pörssi
World Indices
US Stocks
US 30
Nasdaq 100
US 500
Toronto Stock Exchange
London Stock Exchange
Euronext Amsterdam
Euronext Brussel
DAX
SDAX
TECDAX
CDAX
MDAX
Prime Standard
CAC 40
Mumbai S.E.
National S.E.
Commodities
Currency
Cryptocurrency
Exchange Traded Funds
Investtech Indices
The Trend Bible
Tel: +47 21 555 888
E-mail us
Request a call
Visit us
Stocks in rising trends breaking upwards have continued upwards, and at a stronger rate of increase than before. Stocks breaking downwards through the floor of a falling trend have seen strongly negative price development.
Research Results – Breaks Upwards and Downwards from Trends
a) Norway.
b) Sweden.
c) Denmark.
Figure 1: Breaks in the trend direction. Average price development for stocks breaking upwards through the ceiling of rising trends and downwards through the floor of falling trends in Investtech’s medium long term technical charts.
a) Norway.
b) Sweden.
c) Denmark.
d) Finland.
Figure 2: Breaks opposite of trend direction. Average price development for stocks breaking downwards through the floor of rising trend and upwards through the ceiling of falling trend in Investtech’s medium long term technical charts.
| Relative return, rising trends and breaks | Norway | Sweden | Denmark | Finland | Weighted average |
| Breaking upwards from rising trend | 4.7 ppt | 2.8 ppt | 2.6 ppt | 1.1 ppt | 3.3 ppt |
| Within rising trend | 2.3 ppt | 1.5 ppt | 2.3 ppt | 0.2 ppt | 1.8 ppt |
| Breaking downwards from rising trend | 0.4 ppt | 0.4 ppt | 1.1 ppt | -0.6 ppt | 0.4 ppt |
| Relative return, falling trends and breaks | Norway | Sweden | Denmark | Finland | Weighted average |
| Breaking downwards from falling trend | -7.8 ppt | -6.3 ppt | -9.9 ppt | -5.6 ppt | -7.3 ppt |
| Within falling trend | -3.2 ppt | -2.0 ppt | -4.9 ppt | -2.0 ppt | -2.8 ppt |
| Breaking upwards from falling trend | -0.2 ppt | 0.3 ppt | -1.1 ppt | 1.3 ppt | 0.0 ppt |
ppt: percentage points
The charts and tables above show that stocks in rising trends with breaks upwards continue to rise with a stronger rate of increase than stocks within rising trends. Stocks with breaks downwards from rising trends have also continued upwards, but at a rate of increase clearly weaker than stocks within a rising trend and only barely above the market development.
Stocks breaking downwards through the floor of a falling trend have seen very negative further development with a fall of 7.3 percentage points more than benchmark for the weighted average of all the Nordic signals. This is clearly weaker than stocks within a falling trend. Stocks that have broken upwards through the ceiling of a falling trend have developed neutrally compared to the marked in the coming period, which in absolute number gives a rise of 3.5 per cent in the next three months.
The above results fit well with technical analysis theory on breaks from trends. Breaks upwards have given rising prices and stronger rate of increase than earlier. Breaks downwards from rising trends have given continued rise but at a weaker rate of increase. Breaks downward from falling trends have given further fall at a stronger rate of decrease than before.
The results contradict the theory for one indicator: breaks upwards from falling trends. This has not given further fall, but instead an increase in line with the market.
Rising trend breaking upwards. Read the theory and see which stocks are currently breaking upwards through the ceiling of rising trends.
Rising trends breaking downwards. Read the theory and see examples here.
Falling trend breaking downwards. Read the theory and see which stocks are currently breaking downwards from falling trends.
Investtech's reference work based on studies of more than 350,000 signals from trends in stocks listed on
the Nordic stock exchanges from 1996 to 2015.
Practical use - Tools - Statistics - Algorithms - Theory.
The Trend Bible - Start Page More on Investtech's research
The Trend Bible was written in 2016 by Investtech’s Head of Research Mr. Geir Linløkken. The research team behind the Trend Bible also consists of Senior Researchers Asbjørn Taugbøl and Fredrik Tyvand.
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.
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.
Head office
Strandveien 171366 Lysaker, Norway
Research department
Instituttveien 102007 Kjeller, Norway
+47 21 555 888
Contact us