Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets. The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status. Using an index is based on the definition of a Power Trend from Market School. With this indicator, in addition to indexes, it will allow an ETF (more specifically, a “fund” as defined by TradingView) to be used as the source. The reason for the latter is that various ETFs such as ARKK, which are focused on “disruptive technology,” can be helpful to track trends for growth traders.

Options volume is running at 8 times the intraday average

Good new is, LevelUp will automagically find and highlight power trends on daily charts! In addition, the percent change in price can be shown when exiting a power trend. But at Schaeffer’s we use strict trading rules to cut our losses short.

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The concept of a Power Trend was defined by Investor’s Business Daily, more specifically, their Market School course designed to mimic the trading style of IBD’s Founder, William O’Neil. In the world of forex trading, which involves the global exchange... The Forex market, a global arena for currency trading, is renowned...

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1. This is one of the more unique and helpful features of this indicator.
2. To navigate the complex world of forex trading, you need the...
3. For example, you can create an Alert on the Nasdaq Composite that will send a message whenever the requirements for a Power Trend are met.
4. In this week’s Stock Market Update, Mike Webster pointed out that the Nasdaq is now in a Power Trend.

Yellow signals the Power Trend is still in place, however, the price is below the 50-day SMA. The specifics of a Power Trend were defined by Mike Webster, Justin Nielsen and Charles Harris, while working with William O’Neil at IBD. The uptrends of the Nasdaq Composite were studied in great detail, looking for characteristics that were similar across significant uptrends. The end result was a set of rules that define when a Power Trend starts and ends. When a Power Trend is active, there is a stronger than usual uptrend underway.

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The options pits are seeing unusually high activity today, with 21,000 calls and 6,714 puts traded so far, which is 8 times the intraday average volume. Most popular is the July 19 https://traderoom.info/powertrend-2021-overview/ call, followed by the August 20 call. On the charts, M is trading at its highest level since late May. The equity is eyeing its biggest single-day percentage gain since March.

Compare the Power Trend to Moving Average Alignment

The other prominent box that is often shown on LevelUp is the moving average alignment box, shown below. We screen for stocks with momentum using our proprietary tools. For example, you can create an Alert on the Nasdaq Composite that will send a message whenever the requirements for a Power Trend are met. Given TradingView alerts are stored server-side, you can be on notified even if you are not currently running TradingView. There is a Power Trend “circuit-breaker” when the price breaks below the 50-day line and closes 10% or more from a recent high.

Join useThinkScript to post your question to a community of 21,000+ developers and traders. In addition to the visual signals mentioned above, you can also set Alerts to be notified when a Power Trend starts or ends. This is one of the more unique and helpful features https://traderoom.info/ of this indicator. If you prefer to keep your charts clean, the stoplight option may be your best bet. This chart signal displays green, yellow or gray depending on the status of the Power Trend. For example, when the light is green, a Power Trend is on.

If you’re interested to learn more about my work with TradingView, I’ve published 12 indicators that are are free to install and use.

It should be noted, I am using the Nasdaq for all the charts that follow. Once the 21-day crosses below the 50-day that is a sign the trend may be coming to an end. Mike also mentioned there are “circuit-breaker rules” that can end a PT before the 21-day to 50-day crossover. Knowing that there is a Power Trend in play can be helpful to gauge how aggressive to be with your trades.

Macy's stock now stands more than 23.3% higher over the last 12 months, and its closing in on its year-to-date breakeven level. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site. We determine the best time to buy options and give you recommendations in real time to help you make more money, with less upfront capital.

And with targeted trade returns of up to 150% and 2-4 trade recommendations per month, it won’t take many winners to make this strategy pay off. When a power trend is active, there is a stronger than usual uptrend underway. The concept of a power trend was defined by Investor’s Business Daily, more specifically, their Market School course designed to mimic the trading style of IBD’s Founder, William O’Neil. The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. UseThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies.