Chande’s TrendScore

Chande’s TrendScore

This lesson will cover the following

  • Explanation and calculation
  • How to interpret this indicator
  • Trading signals, generated by the indicator

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Described by Tushar Chande in the September 1993 edition of “Stock & Commodities” magazine, the TrendScore indicator makes a quantitative and qualitative determination of the direction and strength of a trend. It does so by comparing the current closing price of a trading instrument with the prior closing prices during the past 20 periods.

The indicator fluctuates between -10 and +10. A reading of +10 implies that a strong bull trend is in progress. A reading of -10 implies that a strong bear trend is in progress. TrendScore readings above zero indicate that a bull trend with varying strength is in progress. TrendScore readings below zero indicate that a bear trend with varying strength is in progress.

Chande's TrendScore
Chart Source: VT Trader

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