Trend identification

As a trader or even potential trader, you have probably heard the saying that it is best to “trade with the trend.” The trend, say all the experts, is your friend. This is smart advice as long as you know and understand that the trend can end. And then the trend is not your friend, it’s your enemy. Trading is a risky business. If you trade against the trend you will likely haemorrhage money faster than you thought possible.

So how can you determine the direction of the trend? At EnigmaSignal we believe in the KISS rule. This says, “keep it simple, stupid!”. The problem is that identifying the trend is not as simple as most people think. You have probably seen products that claim to have a “simple” and “proprietary” method for working out the trend. They don’t work. They may look great after a trade is finished – almost anything does – but they don’t help you at the time you need to trade. That’s because they lag the price action. They don’t predict where the price will go, and thus you can never work out if a trade is worth taking or not. You procrastinate. You lose money. Not good.

EnigmaSignal is different. We use a complex branch of mathematics to really make trend identification simple and another area of mathematics to predict where the price is likely to move to. EnigmaSignal shows you the trend on screen. EnigmaSignal also identifies trend changes and when the trend changes, predicts where the price is likely to move to. This is not simple math, which is why we have several PhD Mathematicians in our team. They have used their skills to create complex algorithms that deliver simple, easy to understand trend signals to the trader.