Mark Minervini's #3 Trend Template requirement is for the 200 day moving average line to be trending up for at least 1 month but preferably 4 to 5 months at a minimum.
A stock with 200 day moving average trending up for 1+ month is potentially making an "early turn" into stage 2 uptrend. Most often, stocks with 200 day moving average trending up for 4+ months is indicative of a stock in a stage 2 uptrend.
This simple indicator colors the moving average line BLUE for stocks with 200 MA trending up for 1+ month and CYAN for ones with 200 MA trending up for 4+ months. The indicator provides fast and simple way to visualize the long term trend and help trend following traders stay on the right side of the trade.
Indicator is customizable from colors to line thickness.
Awesome! You are doing a great job in supporting us all at becoming better traders :)
SiaBayley
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Hi TA, thank you so much for sharing this. You are such a gem. BTW, when you analyse for Mark Minervini's #3 Trend Template, do you use daily or weekly chart? I noticed sometimes, the weekly satisfies the requirement for #3 Trend Template but the daily doesn't. If that's the case, does this mean #3 Trend Template is a fail? Thank you again.
TaPlot
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@SiaBayley, that shouldn't happen often. Higher timeframe trumps lower timeframe. But there is more to the setup that splitting hair!
SiaBayley
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@TaPlot, got you. So much to learn still. Thank you for providing a boost in my learning curve. Enjoy the rest of your weekend.
SiaBayley
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@TaPlot, when looking at weekly chart, should I change the moving average length to 40? If I do, MM's #3 trend check will be done by this indicator as well? Thanks for your time.
TaPlot
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@SiaBayley, the trend coloring should only be used on daily charts. the indicator does NOT adjust to any other timeframe
thx first for such an elegant script. curious how you determine the trend is up or down. For a 50 SMA, do you look at 49 SMA and see if its above or below 50SMA to determine up or down trend ? thx
itanand
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@itanand, or maybe look at the 50 SMA value today vs the 50 SMA as of yest, and see if its higher or lower ?