StockSignal
Directional Alignment
Story type: Situational
Three directional signals have aligned: Aroon shows clear directional dominance, ADX confirms elevated trend strength, and DMI indicates directional alignment. Together these describe a condition where multiple trend frameworks agree.
State
Trend directional alignment
Emergence
Multiple directional indicators in agreement. When Aroon indicates clear directional dominance, ADX confirms trend strength is elevated, and DMI shows directional alignment, multiple frameworks agree on trend presence. This describes a condition where directional indicators converge on the same conclusion.
Limits
This story identifies trend alignment characteristics, not future direction or continuation. It does not predict how long the trend will persist, assess fundamental support, or indicate entry timing. Aligned trends can reverse without warning.
Explanation
Each signal represents an independent observation about trend direction: Aroon measures time since highest high versus time since lowest low. Clear separation indicates one direction has been dominant over the lookback period. ADX Trend Strength measures the magnitude of directional movement independent of direction. Elevated readings indicate a strong trend is present, regardless of which way. Directional Movement Index measures the difference between positive and negative directional movement. Clear alignment indicates one direction is dominating. When all three align, they describe trend presence from multiple measurement frameworks—an observation about current trend state, not future persistence.
Interpretation
This story identifies trend alignment characteristics, not continuation certainty. It does not predict how long the trend will last, assess whether the trend is justified, or indicate timing. Aligned trends can reverse at any time.
Required Signals
aroon
Periods since highest high and lowest low within lookback window
adx-trend-strength
Directional movement dominance independent of price direction
directional-movement-index
Spread between positive and negative directional movement indicators