The Trend Trader Index calculates the simple moving average of the daily high and daily low price of the Xau (Philadelphia Gold and Silver Index) over the past 20 days. A short term uptrend exists if the Xau (Philadelphia Gold and Silver Index) is trading above the 20 day moving average line and a short term downtrend is given if the Xau (Philadelphia Gold and Silver Index) is trading below the 20 day moving average line. Additionally the direction of the simple moving averages could also give additional information about the trend direction.
