The Trend Strength Indicator is a scanning indicator developed by TraderFox. The indicator uses the slope of Simple Moving Averages (SMAs) to determine the strength of a trend. There are two versions of the trend strength indicator: A medium-term and a long-term version.
Calculation of the trend strength
The medium term version is calculated from the slope of the 20 moving average and the 100 moving average.
Medium-term trend strength = slope of SMA20 (in %) + 5 * slope of SMA100 (in %)
The long-term version is calculated from the slope of the 50 moving average and the 200 moving average.
Long-term trend strength = slope of SMA50 (in %) + 4 * slope of SMA200 (in %)
Slope always means the slope from the previous day to the current day. The longer moving averages in both versions (100 and 200 SMA) are weighted with a factor of 5 and 4, respectively, as they react more slowly to price changes and this effect should thus be compensated.
Interpretation of the trend strength
A steep rise in the shorter moving average (20 or 50 SMA) and in the longer moving average (100 or 200 SMA) indicate a high trend strength. It is useful to look at the trend strength in a ranking list. This allows you to determine which stocks on the list have the highest trend strengths compared to the others.
https://traderfox.com/wissen/indikatoren/trendstarke-und-stabilitat/p-486#:~:text=Der%20Trendstärke%2DIndikator%20ist%20ein,mittelfristige%20und%20eine%20langfristige%20Version.