Different trend signals analyze the patterns in prices of stock market indices in different ways. Therefore, they do not all generate buy and sell signals at exactly the same time.

Sometimes one signal gives you an earlier indicator for a change in the direction of the trend than another signal. Working with different signal systems can give you then the opportunity to act quicker on new trends. The earlier you can jump onto a new trend by buying or selling funds, the more you can benefit from that trend.

At other times, a single signal can be a false indication and no change in the direction of the trend materializes. When multiple signals start indicating the same trend direction however, you can have more confidence in that observation. As a result you can decide to invest more of your savings to capitalize further on that trend.

Thus reviewing multiple signals to indicate the long-term trend can help you to achieve better returns. You can capitalize quicker on new trends and you can scale your investments when trends appear to be more robust.