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Lucid Trend Following with Trend Lines

Long Term Trend Lines Medium Term Trend Lines Short Term Trend Lines Lucid Price Action Trend Lines Super Momentum Trend Lines

... TL

Trend Lines

Trend following can be established in many different variations. Trends can be confirmed and concluded using some of the following methods.
  • By Moving averages
  • By parabolic SAR indicator
  • By Lucid-Trend's Trend following system


There are some distinct advantages we have in concluding our lucid-trend's trend following methods. While Moving averages and parabolic SAR methods may demonstrate choppy trend lines and inconclusive trend in the initial stages of the trend, we have overcome that scenario by developing Lucid Trend's trend following method. We have taken Nicholas Darvas's Box theory into consideration and concluded the most advance trend following system.

What is Lucid-Trend's Long Term and Medium Term Trend lines?

There are two key ingredients we have taken into consideration in concluding our trend lines which are Candle analysis and price volatility

Based on the above two parameters we identify directional momentum to create our trend lines.

By going through the complexity of price action, we identify the following conditions to make the savvy investors aware of the followings;

  • What has happened with current price action, if the resistance or support lines are broken or established
  • What to anticipate or expect in the near to forcible future.

Bull Run and associated behavior
Bear Run and associated behavior
Bull Breakout Breakout
Breakdown Break down
Bull Run Bull Run
Bear Run Bear Run
Pullback Pullback or topping out
Exhaustion form bear run Bear pop or Bottoming out
New sun - Accidental Bull Breakout Accidental Bull or Euphoric Bull
Twister - Accidental BreakdownAccidental Bear or Panic Sell


Long Term Trend lines

Our Long term trend is defined in a way, it should keep stock above or below the trend line for the longest period as possible without becoming a victim of macro economics, micro events and headline risk. Therefore, it may continue on for the longest period of time to generate high return for investors.

Trend lines are only broken if the high of the day closes below the support level or low of the day closes above the resistance level.
Our system demonstrates buy or sell condition based on the short term momentum in conjunction with long term trend. Whenever the short term momentum is in favor of the long term outlook, it will demonstrate buy or sell condition.

Medium Term Trend lines

Medium term trend lines are defined more for active investors.

Trend lines are broken if the close of the day closes below the support level or close off the day closes above the resistance level.

Short Term Trend lines

Short term trend lines run on price action activities. They are constantly searching out for breakdown during the bullish run and breakout during the bearish momentum. In the process of doing so it constantly escalates its support line during the bullish momentum.

LPA Price Trend

This analysis should be more suitable for active traders. The objective of this analysis is to define bullish or bearish price action. It constantly searches for extreme price levels. During the bull run it will identify new higher price levels and define a balance line based on the pullback from that level while escalating support level based on the volatility. It does exactly the opposite during the bearish run.

Trend lines are only broken if the high of the day closes below the support level or low of the day closes above the resistance level.

Super Momentum condition

Super momentum is defined using the followings moving averages.
  • 50 day Moving Average
  • 150 day Moving average
  • 200 day moving average

When all moving averages are stacked in a sequence above or below the closing prices that's when the super momentum trend occurs. It's more like a condition or a timing tool for the biggest price action to occur during the short period of time in my observation.

Lucid Trend Following System

Prepared for You, powered by AcuSTAR Tool© 2002-2019

**Past performance is not necessarily indicative of future results. See full risk disclosure for hypothetical limitations.
**End-of-day pricing data provided by Stockdio. For US equities Real-time pricing is provided by IEX Cloud (ifmp)
Data provided by Financial Modeling Prep Current Server Time : 19:47

Quote File Last updated : 05/06/2024 @ 15:49, EOD data will be updated on 05/07/2024, at 17:30
System Status8 : EOD Quotes Updating Scan Alerts on 05/06/2024, at 16:25

Lucid Trend Following with Trend Lines

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