INSIGHTS · PATTERNS

The Eight Trend Conditions — Rules and Boundary Values

2026-07-01 · Updated 2026-10-05 · Patterns

The Trend Template turns trend and relative performance into eight Boolean comparisons. A count is not a probability: 7/8 does not mean an 87.5% win rate. Nor are these eight independent pieces of evidence.

The exact comparisons

  1. Close exceeds both SMA150 and SMA200.
  2. SMA150 exceeds SMA200.
  3. SMA200 exceeds its value 21 trading sessions earlier.
  4. SMA50 exceeds both SMA150 and SMA200.
  5. Close exceeds SMA50.
  6. Close is at least 1.30 times the low over the latest 252 sessions.
  7. Close is at least 0.75 times the high over that window.
  8. The site's RS rating is at least 70.

Work through fixed inputs

Close 100, SMA50 95, SMA150 90, SMA200 85, previous SMA200 84, low 70, high 130 and RS 75 pass all conditions. Conditions six and seven have boundaries of 91 and 97.5. Holding every other input fixed and changing close to 95 fails five and seven, giving 6/8. Real price updates also change averages and RS; this is a controlled arithmetic example.

Boundaries and overlapping information

The first five comparisons use strict greater-than; the final three are inclusive. A close exactly equal to SMA50 fails condition five. Several conditions overlap through average alignment, so pass counts cannot linearly estimate expected returns.

Volume is separate

The 500,000-share 50-day average-volume threshold is not a ninth condition. Only 282 of the 523 U.S. passers on 2026-10-02 met it. Listing maturity, missing-data treatment and rounded display values can also affect reproducibility near boundaries. A recent listing may lack an eligible RS history even when its visible price trend looks strong.

Data and corrections

See the methodology for calculation rules and the 2026-10-02 signal-disagreement study for the frozen sample. Report a date and URL through contact when you find an error.

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