Macro Trends

Trend Extension is a technical indicator that measures how far the PokéViews Top 250 Index is trading above or below its key moving averages (90-day EMA and 200-day SMA). The metric helps identify potential overbought conditions when the index is significantly above its moving averages, or oversold conditions when trading significantly below. Crossovers of these moving averages signal shifts in medium to long-term market trends, while extreme readings may indicate potential reversals.

The methodology for Trend Extension is outlined as follows: Base Index: Uses the PokéViews Top 250 Index as the foundation for calculations. Moving Averages Tracked: • 90-day Exponential Moving Average (EMA 90d) - medium-term trend • 200-day Simple Moving Average (SMA 200d) - long-term trend Metrics Calculated: • Distance from EMA 90d: Percentage the index is trading above (+) or below (-) the 90-day EMA • Distance from SMA 200d: Percentage the index is trading above (+) or below (-) the 200-day SMA Calculation Frequency: Updated daily based on Top 250 Index values.

Trend Extension helps investors and collectors identify both trend direction and potential extremes in the Pokémon TCG market. When the index crosses above a moving average, it signals a shift to an uptrend; crossing below signals a shift to a downtrend. The 90-day EMA tracks medium-term trends while the 200-day SMA identifies long-term market direction. Large positive readings suggest the market has rallied significantly above its trend and may be overextended, while large negative readings indicate oversold conditions. This dual utility makes Trend Extension valuable for both trend-following strategies and identifying potential reversal points.