Chaos Trend Line
Last updated
Last updated
The Chaos Trend Line is like a safeguard against sideways-moving markets. When the market is going sideways, the Chaos Trend Line looks like a straight, flat line. But when the market starts to follow a clear upward or downward trend, the line moves along with it.
This is super helpful for us because it tells us if the market is just going back and forth or if it's really taking a strong direction. So, if the line is flat, we know to be careful because the market might not be in a clear trend. But if the line goes up or down, it's a good sign that the market is on the move, and we can make better decisions to avoid uncertain sideways periods.
Sideways movement = flat line
Trending market = line moves up or down
Helps us spot clear trends
Flat line: caution, unclear trend
Line movement: strong trend indication