"All bets are off" indicator/filter

B

Bouds

Hi

I am very much a systematic trader utilising a combination of momentum based indicators such as True Strength Index to enter/exit a trade. Unfortunately, I find that such indicators fall over when the market is powering ahead with little or no dip or when it enters a very tight congestion zone.

I am looking for an "all bets are off" indicator/filter which will help in confirming/cancelling the signals generated by the momentum indicators.

So far, I have found only the Vertical Horizontal Filter (VHF) to be of any use (limited as it may be). I have also looked at the Wilder ADX indicator but not really found it to be very useful.

Any suggestions/thoughts should be appreciated

Bouds
 
no thoughts, but possibly an idea, try counting ma crossovers. Obviously, few would indicate a strong trend, and many would indicate congestion.

Then set up your own min and max numbers.
 
I've gone on and an about this because it's worked so well for me, but a more predictive way is to simply draw a horizontal line every time ma crosses.

You quickly find price zones where there is a strong difference of opinion.

When prices break above these zones, new bears find litttle reason to sell, and when prices break below, bulls will not step in and buy.

ok, I'll give it a rest
 
Hi profitseer

Thanks for your reply. Interesting thoughts.

I shall definitely follow throught with your ideas. I guess that the lengths of the two MA should be quite short to reduce lag. Also in a strong trending market, MA's should be set to calculate on the high and low prices for each intraday period (5/15/30 min)rather than closing price for each period.

Bouds
 
I have a 450k file on the use of TSI and beyond from Active Trader Magazine.

Just give me your email, and I will send it out to you,
 
Profitseer said this about moving averages: "I've gone on and an about this because it's worked so well for me, but a more predictive way is to simply draw a horizontal line every time ma crosses."

Hi Profitseer,

I've been studying up on moving averages and would be interested in reading past posts by you in which you have outlined your ideas. Would you be so kind as to point me to the thread(s) in which these posts have appeared.

Many thanks in advance,

chaos
 
Quote from chaos:

Profitseer said this about moving averages: "I've gone on and an about this because it's worked so well for me, but a more predictive way is to simply draw a horizontal line every time ma crosses."

Hi Profitseer,

I've been studying up on moving averages and would be interested in reading past posts by you in which you have outlined your ideas. Would you be so kind as to point me to the thread(s) in which these posts have appeared.

Many thanks in advance,

chaos
More...

You can use EliteTraders search menu in the upper right hand corner to do that...

or simply use the below link to see all of Profitseer posts:

http://www.elitetrader.com/vb/searc...d=109530&sortby=lastpost&sortorder=descending

What Profitseer said is a nice gold nugget if any trader wants to integrate price moving average crossovers into their trading methodology.

In fact...you may want to find out which moving averages are suited for your trading style.

NihabaAshi
 
You can use EliteTraders search menu in the upper right hand corner to do that...

or simply use the below link to see all of Profitseer posts:

http://www.elitetrader.com/vb/searc...rder=descending

What Profitseer said is a nice gold nugget if any trader wants to integrate price moving average crossovers into their trading methodology.

In fact...you may want to find out which moving averages are suited for your trading style.

NihabaAshi

Hi NihabaAshi,

Thanks for the reply. A closer inspection of the search function revealed the ability to search by name and thread, not just name and post as i have been doing it. that makes it much easier to find what you're looking for. Obviously. Doh!

BTW, over the past few months, I've been doing a great deal of research here at EliteTrader, and I've come across quite a number posts of yours that I have learned from - including your recent thread on moving averages.

Keep 'em coming. Us newbies can use all the help we can get.

Best Regards,

chaos
 
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