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Adaptive Trend & Cycles Following Method
- STLM indicator is very important one to estimate the trend. Generally, if STLM value is above zero it is bullish trend (up-trend), below zero - the bearish trend (down-trend). It is in general.
- But STLM is forestalling indicator: local minimum of STLM is always coming before the local minimum of SATL, and local STLM max foreruns the local SATL max. Besides, for STLM to have min or max is necessary conditions for the min/max of SATL: min/max of SATL is not coming without min/max of STLM first.
- If STLM and SATL are on consolidated up-trend/down-trend it means the trend strengthens and accelerating (up or down respectively).
- The up-trend is established if STLM value is zero or above zero with growing SATL. The down-trend is established if STLM value is zero or below zero with falling SATL down.
- The up-trend is having much bigger potential (to continue) if the value of STLM is higher (and as bigger as higher). And down-trend is having much bigger potential (to continue) if the value of STLM is lower (and as bigger potential of down-trend as lower value of STLM).
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