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Diving into technical analysis with Invstr: Trend lines

by | 5 Jun, 2018

Use technical analysis tools in the Invstr app to hone your investment skills

Technical analysis tools can help investors to make smarter decisions when buying and selling securities. In this blog we will take a look at the role of trend lines within technical analysis. Trend lines that connect the highs or lows in the stock’s price history can help identify the current trend and predict what the stock price might do in the future.

Cubic fit: Uses polynomial mathematical functions to specify a cubic fit trend line on a series.

Cumulative Average: Cumulative Average is an ordered pair of representing the cumulative calculated average of all data up to the current point.

Exponential Average: Exponential Average is similar to simple average with weight factor added to it. This type of average is known to react faster to recent changes of the trend.

Exponential Fit: Uses exponential mathematical functions to specify an exponential fit trend line on a series.

Linear Fit: The best-fitting straight trend line.

Logarithmic Fit: The best-fitting curved line. Used when the rate of change in the data increases or decreases quickly and then levels out. This type of trend line is most useful with a lot of data to better visualize the curved line.

Modified Average: Modified Average shows the moving average value over a set period. Used to emphasize the direction of the trend and smooth out the fluctuation.

Power Law Fit: Power Law trend line is a curved line using power function to draw a line. Sparkline will not produce any errors, it will plot the point, but from the power trend line prospective the result will not be accurate. Use Power trend line with data sets comparing measurements that increase at a specific rate.

Quadratic Fit: Uses quadratic equation to form a trend line showing the overall effect of the high and low data points with the accuracy of a linear curve.

Quartic Fit: Uses quartic polynomial to specify a trend line on a series.

Quintic Fit: Uses quintic polynomial to specify a trend line on a series.

Simple Average: Simple Average is a set of numbers, each of which is the average of a corresponding subset of data points. Also known as Simple Moving Average.

Weighted Average: Weighted Average is any average that applies a multiplying factor, giving weight to data at different positions.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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