Trend strength describes the character of movement over a chosen interval. It does not state where price must go next, and the reading can change when the timeframe changes.
Returns, indicators, and relative strength organize the evidence, but they are context rather than the source of Anemoi’s directional flag.
Anemoi takes the price-first route: its proprietary algorithm applies Trigger Levels and the Price Velocity indicator to flag buy-or-sell conditions in AP Terminal, while Crosses provide supporting confirmation and context.
The purpose is to organize observable price behavior around persistence, location, and the timeframe that owns the thesis. Persistent movement may be consistent with demand or supply, but it does not establish who is trading or why.
The flag cannot identify a particular fund or prove its intent; it is decision-support information, not a personalized recommendation, automated trade, prediction, or promise of performance.
Practical answer: Describe direction first, then judge persistence, pullbacks, follow-through, and location. A strong past move can be extended and unsuitable for a new entry, so strength and timing must remain separate.
Use observable descriptions
A rising trend can make higher swing highs and higher swing lows, hold important areas, recover from pullbacks, and preserve progress after expansion. A weakening trend may lose follow-through, retrace more deeply, or repeatedly fail near the same area. These are descriptions, not forecasts.
Percentage return alone is incomplete. Two stocks can gain the same amount while one advances steadily and the other depends on one gap. The path changes the possible invalidation, order risk, and holding experience.
Judge strength relative to location
Does movement continue across several observations instead of one burst?
Do pullbacks stabilize and regain progress, or do they keep deepening?
Is price near a meaningful area or far beyond a practical failure point?
The same strength reading means different things above a defended range, inside congestion, and after a vertical extension. Location helps the trader distinguish a developing move from a move that may be difficult to enter with controlled risk.
Keep relative strength timeframe-specific
A stock can outperform an index while both decline. It can lead over five days and lag over six months. State the benchmark and lookback before using the comparison. Relative strength can prioritize research, but it does not replace a setup or invalidation.
Do not count several indicators derived from the same prices as separate confirmation. Moving averages, oscillators, and trend colors may respond to one move with different delays. Give each selected measure one defined job.
A repeatable trend review
- Name the holding period and controlling timeframe.
- Describe direction without future tense.
- Review persistence, pullback depth, recovery, and follow-through.
- Mark the nearest decision and failure areas.
- Compare the instrument with a stated benchmark and lookback.
- Record event, gap, liquidity, and portfolio risks separately.
Bottom line: A useful trend-strength reading is observable, timeframe-specific, and level-aware. It improves the next review without pretending to know the next price. That distinction protects discipline.
Sources and review notes
Important: This page is for general educational purposes only. It is not investment advice or a recommendation to buy, sell, or hold any security. Trading and investing involve risk, including possible loss of principal.