How the trend signals are alerted in ASTSS?
[Back to top] ASTSS alerts trend signals based on a confirmation model which we developed. It reflects the traders’ psychology in the stock market. • On day 1 ASTSS calculates trend using today’s trading information. If ASTSS catches trend reverse, it alerts a trend changing warning signal, i.e. • green triangle with yellow background – stock trend is changing from down to up or • red triangle with yellow background – stock trend is changing from up to down. These signals mean that the stock trend is being reversed, but previous trend is still intact. • On day 2 ASTSS confirms day 1’s trend changing warning signal. If the trend changing warning signal is confirmed, ASTSS keeps this signal; otherwise this signal is discarded. • On day 3 ASTSS confirms day 1’s trend changing warning signal again. If it is NOT confirmed, this signal is discarded; otherwise ASTSS alerts true trend signal, i.e. • solid green triangle – the stock is in up trend or • solid red triangle – the stock is in down