Trend Confirmation Indicator
The Trend Confirmation Indicator function computes the ratio between a short-term moving average and a longer-term moving average of the stock price. Resulting values oscillate around the 100 level. Applications of TCI include generation and confirmation of buy and sell signals. For example, when the TCI advances above 100, this may be interpreted as a buy-signal.
1. Syntax
TRENDCONF(d0,s0,s1,Alignment)
2. Input
The Trend Confirmation Indicator function requires the following input series:
- d0 - Input data values - The set of data values for which the Trend Confirmation Indicator is calculated, usually the daily close price of a stock.
3. Parameters
The Trend Confirmation Indicator function has the following parameters:
- s0 - Short Period - The short time period for which the Trend Confirmation Indicator is calculated.
- s1 - Long Period - The long time period for which the Trend Confirmation Indicator is calculated.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
4. Output
The Trend Confirmation Indicator function generates the following output:
- Trend Confirmation Indicator - The Trend Confirmation Indicator result set.