Market Trend shows which direction a stock's price momentum is heading. Think of it like checking if a ball is rolling uphill, downhill, or sitting still.
We track something called MACD (Moving Average Convergence Divergence) which compares two different speed measurements of price movement:
🟢 Bullish MACD line is above the signal line - upward momentum detected
🔴 Bearish MACD line is below the signal line - downward momentum detected
🔵 Neutral MACD and signal lines are close together - no clear direction
The "Momentum" reading tells you how strong the current trend is and whether it's getting stronger or weaker based on the last 30 days:
Momentum Types:
When the MACD line crosses above or below the signal line, it can indicate the start of a new trend. Swing Action looks for these crossovers over the past 5-7 days to catch fresh momentum changes.
MACD uses two exponential moving averages (12-day and 26-day) and compares them to a 9-day signal line. The histogram shows the difference between these lines over the last 30 days.