Initial Trend Readings

One of the most powerful Quality Indicators associated with every Autochartist update is the Initial Trend reading.  It is one of the most distinguishing facets of Autochartist.  The Initial Trend reading allows each chart pattern to be analyzed within the context of the underlying market cycle.  The 30 minute Reversal Channel Up pattern on the EUR/USD has a broken the support line (blue) of the pattern.  This break signals the “Reversal” of the uptrend on this time frame.  The Initial Trend reading is indicating that there is still some strength in the uptrend and that prices are likely transitioning into what could become distribution.  Fewer Initial Trend bars would indicate accumulation - a narrow sideways cycle - while more bars would point to an trend strength.