Chande's TrendScore

Overview

Chande's Trendscore indicator was described by Tushar Chande in the September 1993 edition of Stock & Commodities magazine.

The TrendScore attempts to make a quantative and qualiative determination of the direction and strength of a market trend by comparing the current close price to previous close prices over the last 20 periods.

Interpretation

The TrendScore indicator oscillates between +10 and -10. A +10 reading indicates a strong uptrend is underway. A -10 reading indicates a strong downtrend is underway. Readings above 0 suggest an upward trend of varying strength and readings below 0 suggest a downward trend of varying strength.

© Help for New Traders