Trend Days

Segmented Cumulative UpVol-DownVol | Making of Trend Days

As traders we are always fascinated by trend days, for novices it a great day, for the ones who trade reversions to the mean, its dreadful.

In this post we look at what happens in the underlying stocks on Trend Days.

The indicator that we have chosen to analyse trend days is a % Cumulative Upvol-Downvol for a Segment of Stocks. There are three segments of stocks that I have taken.

Segment 1 - Top 10 Stocks By Weightage - Constituting (60%) - Solid/Red/Green - Top

Segment 2 - Next 15 Stocks By Weightage - Constituting (20%) - Dashed/Red/Green - Mid

Segment 3 - Next 25 Stocks By Weightage - Constituting (20%) - Solid Yellow - Bottom

So what do you see here?

a) You need the Top Segment to be trending.

b) If the Mid segment goes along with the Top good.

c) Bottom Segment unless makes a massive impact , does not really matter.

Figure 1 - 25th Feb’19

Figure 2 - 11th Mar’19

Figure - 3 - 5th Mar’19