The Market Trend Indicator is based on the trading flow study of a wide range of stocks in the S&P500 index. It was developed with a primary purpose of find turning points in the market trend and therefore can be used as an indicator of the best time to trade.

Usually the balance between buyers and sellers interest changes before the short-term trend changes. Several conditions and changes in the trading flow data are represented in a form of a digital trigger (red line on the chart). The digital trigger can be in one of the two states - upper or lower. The Lower state is a normal state, when no changes in the market trend are expected. The Upper state indicates that more stocks in S&P500 index have the potential to go in the opposite direction than the S&P500 index itself. That can lead to a leveling up of the trend or the consequential reversal.

Interpretation is easy if the S&P500 closing shows a direction and difficult if S&P500 closes sideways. An examination of the S&P500 intraday 5-minute chart could help in this case.

If the S&P500 index closes lower than in the previous day and our momentum indicator changes from the bottom level to the top level - you might expect an uptrend at this point.

If the S&P500 index closes higher than in a previous day and our momentum indicator changes from the bottom level to the top level - you might expect a downtrend at this point.

Market Trend Analysis - a properitary momentum indicator that shows possible turning points in the market trend. Change from the bottom level to the top level indicates a possible reversal of the short-term trend.