The 'Adaptive Trend Finder (log)' indicator analyzes the entire available history and calculates the strongest trend channel. It is arguably the best tool for instantly visualizing the price level from a technical analysis perspective.
On this chart, we have applied the 'Adaptive Trend Finder (log)' indicator twice, using logarithmic scale settings, and we have selected the 'Use Long-Term Channel' option for one of the two indicators (red). We adjusted the table to prevent overlap with the first indicator (blue).
What do we observe on the S&P 500 Index?
We can see that there are two Ultra Strong trends, one starting in the late 1930s and the other beginning in 2009. The CAGR (Compound Annual Growth Rate) for the channel starting in 1939 is 7.4%, and for the one starting in 2009, it is 10.6% (excluding dividends).
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