Trend Analysis
figure 5.19 A 3‐Period SMA of Bar Stochastic Indicating Bullish and Bearish Diver-
gences on the Weekly Chart of EURUSD.
Source: MetaTrader 4- Angular Symmetry and Momentum: Any change in the angular symmetry is
also an early indication of potential bullishness or bearishness in the mar-
kets. In Figure 5.21, 3M Co. is displaying consistent angular symmetry over
a period of three years. Generally speaking, an increase in the angle of ascent
is bullish for the stock, while a decrease is bearish. Trendlines 1 and 2 are
also parallel, which is a strong prognosticator of potential bullishness. This
is because trendline 1 was subsequently followed by a steady rise in share
price and we tend to expect this to also unfold in a very bullish manner after
figure 5.20 Declining Average Real Body to Candlestick Range Ratio Indicating Trend
Weakness.