How to define a strong trend ?

Quote from MadeMan:

its obvious when u look at a chart ... :)

ccjBV.png
More...

It's a little subjective.

For instance, please see the low i marked with a red arrow, at the time, howcome that was not the HL?, making your HL mark, a LL.
 

Attachments

Quote from Lucrum:

+ 1



Which is absolutely true.



What sort of "definition" is the OP looking for? Something that can be coded?
More...

IMHO:

It would be very hard or even impossible to come up with an objective definition that can be coded.

I would like to hear some comments and suggestions. Hopefully, some fellow members may like to share their experience.:p
 
It may sound weird, but for me trend or not is identified by... the shape of pullback. It's a little bit hard to explain (NoD just made the best possible job to do that IMO), but that's how it is for me: when I see the directional thrust and the market then retraces in a "good" shape I treat it as likely to continue and thus it's likely a trend and consequently I trade with the trend.
 
Quote from moonmist:

IMHO:

It would be very hard or even impossible to come up with an objective definition that can be coded.

I would like to hear some comments and suggestions. Hopefully, some fellow members may like to share their experience.:p
More...

If close > bollingerband(20,2) * 1.02 then buy next bar at open;
 
Quote from NoDoji:

The best way to define a strong trend objectively is to look at as many after-the-fact examples of what you consider a "strong trend" in your selected trading time frame and note as many markers (price patterns, indicators) as you can that occur during that strong trending price run. You should find certain markers that occur across all the examples. These become your strong trend identifiers.

I've found that the one marker that occurs in strong trends in both my 5-min intraday time frame and my daily swing trading time frame is a failure of price to close below a 20-period EMA before resuming. In extremely strong trends, price may not even pull all the way back to a 20EMA before resuming.

I've also found that the price action leading into the start of strong trends is usually a break out of a period of low volume consolidation with no retrace into the consolidation zone or a significant gap up through previous resistance or gap down through previous support with no retrace into the gap zone.

Since you never know for sure if either of these conditions will trigger a trend, much less a strong trend, you must do what all traders do on a regular basis: Assume the risk, be prepared to take a loss at the price where the breakout would be considered a failure, and let the winner run until the trend puts in a clear reversal signal in your trading time frame.
More...

Simply a somewhat different view


I like to see where in a consolidation area – a battle ensued

I like to see trapped traders – either on the long side…, or short

I like to see where shorts and longs fought for control – and blood was exacted

iow – I like to see pressure build up

So that when it eventually bursts – and it always does – it bursts with a big boom (meaning = with move traders are scrambling to get in… the other side exiting with their asses scorching)

================================

The other way a strong move occurs – is when one side is conspicuously absent


I can always rest assured either of these types of moves will go big
++++++++++++++++++++++++++++++++

To eyeball the magnitude of a move (I hate the term trend) – let’s say its an UM in this instance;

Draw a diagonal line – @ 45 degree up angle

Above it = is strong/ growing stronger
On it = is nominal
Below it = is weak/ weakening

Reverse above for a DM

================================

Mkt likes 50% levels…

45 degrees is half way (50%) between dead flat, and straight up to the f’n moon….

Or half way between dead flat and straight to hell (holloween humor as it were)

RN
 
Forgot one other salient point

A move can have magnitude – but lack strength

or

A move can lack magnitude – yet have strength

Always good to know what the big boys are doin.. or have done

RN
 
Quote from Daring:

It's a little subjective.

For instance, please see the low i marked with a red arrow, at the time, howcome that was not the HL?, making your HL mark, a LL.
More...



its not really subjective .. yes its a lower low... if ya watch it as a trend within a trend .. i just didnt labled it ..

but i context its a higher low ..

just gauge the buying and selling waves ...
 
the best scalper I ever knew just simply traded the 50 vs the 200 day ma

all he traded was NQ

he was very rarely in a position more than an hour

if the 50 was below the 200 he only scalped from the short side

in those days, the 50 was below the 200 for like a year

so I guess you could say he identified a trend and capitalized from it
 
Quote from cornixforex:

It may sound weird, but for me trend or not is identified by... the shape of pullback. It's a little bit hard to explain (NoD just made the best possible job to do that IMO), but that's how it is for me: when I see the directional thrust and the market then retraces in a "good" shape I treat it as likely to continue and thus it's likely a trend and consequently I trade with the trend.
More...

In a strong trend, a pullback will likely remain as a pullback, and not transform to a reversal. Yes. The details of the pullback could be very important.....
 
Quote from oldtime:

the best scalper I ever knew just simply traded the 50 vs the 200 day ma

all he traded was NQ

he was very rarely in a position more than an hour

if the 50 was below the 200 he only scalped from the short side

in those days, the 50 was below the 200 for like a year

so I guess you could say he identified a trend and capitalized from it
More...

what timeframe though?
 
You must log in or register to reply here.
Back
Top