Have a look at my research on trend-following indicators in which I systematically analyzed 10 ways to ride the trend in US stocks. The back-testing was done with Wealth-Lab Pro(R) for Fidelity Investments. The stocks considered were the S&P500 components. The 10 indicators tested were:
- Average Directional Movement Index (ADX)
- Commodity Channel Index (CCI)
- Channel Break-Outs (NH/NL)
- Moving Averages (MA)
- Moving Average Crossover (MAXO)
- Moving Average Convergence Divergence (MACD)
- Momentum (Mo)
- Rate of Change (RoC)
- Linear Regression
- Chaiken Money Flow (CMF)
Check it out – the data may surprise you!
https://guidance.fidelity.com/viewpoints/how-to-befriend-the-trend
