How to Use Trend Following Investments

How to Use Trend Following Investments

Suggested Holding Period: 6 to 18 months

This page explains how to read and interpret the Trend Following Investments results. This scanner is designed to identify stocks that are already in established uptrends and suitable for investors seeking to participate in sustained price movement while avoiding short-term market noise :contentReference[oaicite:0]{index=0}.

The results shown here are for Index: NIFTY 50. Each row represents one stock for one trading day, evaluated from an investor’s perspective with emphasis on trend alignment across multiple timeframes.


Understanding Each Column

Symbol

The stock symbol as listed on the exchange. Each symbol uniquely identifies a company within the index.

Date

The trading date on which the trend-following evaluation was performed. All values in the row correspond to this trading session.

Close

The closing price of the stock for the given trading day.

  • Acts as the reference price for all trend checks
  • Used to determine position relative to key moving averages

Qualified

Indicates whether the stock meets the trend-following criteria.

  • Marked as qualified only if all required trend conditions are satisfied
  • Represents eligibility for trend-following investment consideration

RSI (14)

The 14-period Relative Strength Index.

  • Confirms momentum strength within the trend
  • Helps avoid weak or deteriorating trends

Above 20 DMA

Indicates whether the stock is trading above its 20-day moving average.

  • Confirms short-term trend alignment
  • Useful for identifying pullbacks within an uptrend

Above 50 DMA

Indicates whether the stock is trading above its 50-day moving average.

  • Confirms intermediate-term trend strength
  • Acts as a key support level in trending stocks

Above 100 DMA

Indicates whether the stock is trading above its 100-day moving average.

  • Confirms broader trend structure
  • Helps ensure the trend is well established

How to Read This Data Holistically

This scanner should be interpreted by assessing trend alignment across multiple moving averages rather than focusing on any single signal.

  • Stocks trading above all key averages indicate strong trend health
  • RSI supports momentum sustainability within the trend
  • Breaks below multiple averages may signal trend exhaustion

What This Scanner Indicates

  • Stocks in sustained uptrends
  • Opportunities to participate in ongoing price trends
  • Trend continuation candidates suitable for 6–18 month holding periods

What This Scanner Does Not Indicate

  • It does not identify short-term trading opportunities
  • It does not guarantee trend continuation
  • It does not replace disciplined exit rules

Important Notes

  • Trend-following requires patience and adherence to rules
  • Pullbacks are normal within healthy trends
  • Exits should be based on structural trend breaks, not minor volatility

Disclaimer: This information is provided for educational and analytical purposes only and should not be considered trading or investment advice.


Data Update Frequency

Trend Following Investments data is updated after market hours for each trading day.


Summary

The Trend Following Investments scanner helps identify stocks that are aligned with strong, established trends across multiple timeframes. It is best used by investors seeking to ride sustained price movements while maintaining discipline through trend-based risk management.