Trend systems are often used to identify entry and exit points, but they can be difficult to track for a portfolio of securities because they are constantly changing. You can’t afford to miss an opportunity when it presents itself. So we created this simple but widely used decision recipe.
Identifying the short-term or long-term trend of a security is an important initial action for many traders. You may want to begin an automation by first checking a symbol’s price relative to a moving average technical indicator. This decision recipe automatically checks if an asset is above or below a specified moving average length to determine if it is in an uptrend or downtrend before proceeding through the automation.
You can use the decision recipe in scanner, monitor, and event automations. For example, you could add the decision action to a scanner to evaluate if a ticker symbol is above a 50-day SMA and enter a position accordingly. You could then use the same recipe in a monitor automation to close the position if and when the security drops below the 50-day SMA.