Sector Trends

The Sector Trends tool is designed to help you identify potential trends and evaluate momentum in various stocks, industries and sectors. In addition to identifying the trend, Sector Trends provides a quick way to measure the trend's strength. To understand how to find new opportunities using this tool, let's first discuss sector and industry groups, and the differences between them.

How Sector Trends Work

Let's take a look at market indexes, industry groups and individual stocks to evaluate how they work together and what a trend in one category may mean for another category.

Sector Trends Calculations

Sector trend is a study of the change of momentum applied to sector and industry group indexes and individual stocks to calculate the direction of a trend and measure the trend's strength. The study is completely independent of how the sector and industry indexes are calculated or weighted, and the volume data is not part of the calculations.