www.cmsfx.comThe Trend Continuation Factor (TCF) was introduced by M. H. Pee. in the article "Trend Continuation Factor". It was designed to help identify the market trend and direction.
Interpretation
Positive values of either the PlusTCF or MinusTCF lines indicates a strong prevailing trend. Positive values of PlusTCF indicate a strong UpTrend, while positive values of MinusTCF indicate a strong DownTrend. Both PlusTCF and MinusTCF cannot be positive at the same time since an uptrend and a downtrend cannot occur simultaneously. However, PlusTCF and MinusTCF can both be negative; this signifies market consolidation (the absence of a prevailing trend).
Typical trading strategies include entering Buy positions when PlusTCF is positive and entering Sell positions when MinusTCF is postive. An alternative trading strategy may include entering trades based on the crossings of PlusTCF and MinusTCF.
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