Rising trend where a stock with positive fundamental development over time ranges from price P/E=12, which many investors think is cheap, to P/E=15, which many investors think is expensive.
Investtech's help pages about trends and other technical indicators is located under the Insight & Skills tab and also show which of the bigger companies are in rising trends right now.
The following is taken from Investtech’s help pages on trends.
The trend is one of the most important indicators of technical analysis. According to technical analysis theory, stocks that are in rising trends will continue to rise, and stocks in falling trends will continue to fall. Investtech’s research shows that this theory is correct; please find the research reports under the Research tab on top of the page.
This makes it very important to identify whether a stock is in a rising or falling trend. It is also important to recognise when trends change, in order to get out early in the case of a falling trend and get in early in the case of a rising one.
The trend is a simple indicator to follow. Every day Investtech’s systems identify the qualitatively best trend for each stock. Stocks in rising trends should be bought and stocks in falling trends should be sold.
The bottom line of trend analysis is simple: The trend is your friend.
It may appear that a stock should be sold when it breaks downwards from a rising trend. However, this often simply signals that the stock is taking a small break and will continue upwards soon. The following applies when assessing trend breaks:
The key principle of trend analysis is simple: the stock will continue in the direction of the trend.
Depending on where the price is in relation to the trend channel, strong or weak development is indicated.
The conditions above are theoretically valid for all time perspectives, both in the short term of even a few days or weeks, up to the long term with trends that encompass several years.
The Trend Bible shows how correct this theory proved to be in practice on the Nordic stock exchanges in the period 1996 to 2015, and describes how such research can be carried out objectively.
Stocks within a trend:
Stocks breaking out of a trend:
Sideways trend:
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.
Investeringsaanbevelingen worden gedaan door Investtech.com AS ("Investtech"). Investtech garandeert geen volledigheid of juistheid van de analyses. Eventuele fouten in de aanbevelingen, koop- en verkoopsignalen en mogelijke negatieve gevolgen hiervan zijn geheel het risico van de belegger. Investtech neemt geen enkele verantwoordelijkheid voor verlies, direct of indirect, als gevolg van het gebruik van Investtechs analyses. Meer informatie omtrent Investtechs analyses kunt u vinden op disclaimer.