Absent a major shift in Market Psychology, local real estate markets tend to hold a steady trend — up, down, or flat. We call this market momentum. Technical Analysis, and specifically our S.T.A.R. tool, tracks the strength of that momentum using six markers split into three groups: Short Term, Intermediate, and Long Term.
Like a traffic signal, the S.T.A.R. icons are red, yellow, or green:
- Red — bearish; negative/declining momentum.
- Green — bullish; positive/upward, appreciating momentum.
- Yellow — that indicator changed direction this period. If the new direction holds next period it becomes green or red; if it stays yellow for more than one period, that indicator is alternating up and down.
Short-Term indicators are very sensitive to small changes and flip colors most often — some of that is just normal minor ups and downs. By themselves, short-term changes usually aren't cause for alarm, except in two cases:

- Early warning. Changes in the long-term indicators are normally preceded by short- and intermediate-term changes. All trend reversals BEGIN with the short-term triggers, so they're an early signal that a change in the local cycle may be coming.
- The 'triangle' pattern. When the short and intermediate icons form a consistent pattern of color changes (green→red or red→green) 'growing' from left to right, it usually signals a major cycle change/reversal underway.
Long-Term indicators are slower to change and carry more significance when they do — they reflect many data points over a long period and are less swayed by normal fluctuations. Markets with no consistent one-color pattern (random horizontal changes, especially long-term) generally lack momentum and are poor for Leveraged Appreciation.
Note: strong upward momentum alone doesn't make a market investable — it's the first step, and must be confirmed by strong T.A.P.S. scores and the Wealth Phase. But a market that lacks positive momentum (lots of red in the intermediate/long-term columns now) is not a good candidate for new investment. See it all in the Market Summary Report → Advanced Mode.