The Trend Continuation Factor (TCF) identifies the trend and its direction. TCF was introduced by M. H. Pee.
Positive values of either the Positive Trend Continuation Factor (TCF+) and the Negative Trend Continuation Factor (TCF-) indicate the presence of a strong trend. Positive values of TCF+ indicator a strong uptrend, while positive values of TCF- indicate a strong downtrend. TCF+ and TCF- cannot both be positive at the same time, since both an uptrend and a downtrend cannot occur simultaneously. Both can be negative. If both are negative, this signifies consolidation, or the absence of a trend. It recommended to enter long positions when the TCF+ value is positive, and enter short positions when the TCF- value is positive.
Presentation
Above is a Daily Chart of Microsoft (MSFT). The Trend Continuation Factor (TCF) is added to the lower window pane, using the preferences seen below. The blue line represents the TCF+ while the red line represents the TCF-.
Formula
Keyboard Adjustment
The TCF period may be adjusted from the keyboard without opening the preferences. Select the TCF indicator in the chart (either by tabbing to the indicator or clicking on it); then press the up/down arrows on they keyboard to increase/decrease the period by one.