I am using a trend following strategy in the stock market. If you look at the price chart, you can tell one stock's trend is stronger than the other. Now I want to develop an index to calculate the 'strength' of the trend, is there any good method for this?

  • $\begingroup$ There are a few different ways to quantify "strength," a little more detail about what parameters your using would help. In any case, looking at some technical analysis books/sites might be best for what you're looking for. $\endgroup$ – jeff m Aug 4 '12 at 12:16
  • $\begingroup$ Time-series or Regression models could be an answer. So, there are many models that it's up to you. I think VECM(vector error correction model) is suitable for this case. $\endgroup$ – NJH Aug 5 '12 at 15:49
  • $\begingroup$ Hi bigbug, I've closed your question since it is overly broad. There are far too many technical indicators to list here, and many of them attempt to quantify "strength" of a trend. Please be more specific. $\endgroup$ – Tal Fishman Aug 7 '12 at 14:21
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    $\begingroup$ It's an interesting question, I think it could be possible to provide a brief answer with at least an indication of where to research further. $\endgroup$ – Anthony Dec 18 '12 at 14:42

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