A power trend starts when these four things take place simultaneously on a major index:
1)The low is above the 21-day exponential moving average(EMA) for at least 10 days.
2) The 21-day EMA is above the 50-day simple moving average for at least five days.
3) The 50-day line is in an uptrend (one day is sufficient).
4) The market closes up for the day (Power Trend cannot start on a down day).
A power trend typically ends when the 21-day crosses back below the 50-day.
It is NOT a buy signal, FTD is the buy signal to get in the market
It is a strategy designed to identify unusual strength in the market.
