Directional control, trend strength, and trend-following signals.
| Concept | Explanation | |---|---| | DMI crossover | +DI above -DI suggests upward directional control; -DI above +DI suggests downward control. | | ADX | Measures trend strength, not direction. Rising ADX can accompany either an uptrend or a downtrend. | | SuperTrend | A volatility-adjusted trend line that flips when price crosses its calculated threshold. | | Parabolic SAR | Dots switch sides of price when the model identifies a possible trend reversal. | | Ichimoku TK cross | Tenkan-sen crossing Kijun-sen; interpretation depends partly on position relative to the cloud. | | Kumo cloud breakout | Price moving above or below the Ichimoku cloud, often treated as broader trend confirmation. |
Trend indicators often share the same underlying price data. Combining several of them may create the illusion of independent confirmation when they are measuring similar behavior.