How to define a trend 100 % objectively ?

Quote from pneuma:

You need to, with a pen and paper, decide what characteristics your trend has.

Eg todays 200 day moving average is higher than yesterdays 200 day moving average. The 100 day moving average is 15% higher than the 200 day moving average. etc
More...

Do you realize that the what you are saying can be done with the 100 day moving average alone. The 200 adds NO information at all. What you said can be alternatively said as follows: the 100 MA is higher than what it was 100 days ago, and it is higher than 35% compared to what it was 100 days ago. Note now that the first part in your condition is now redundant, as it is implied by the second part.

I do not blame you here, but moving averages are not understood at all. Make sure you do not spin weels, while thinking that you are moving very fast. The majority read a book or hear a talking head, and think they understood price action.
First understood your tools.

Verify what I wrote above, and see whether I am right or wrong.

PM me if you want to know more about MAs.
 
Quote from jack hershey:

In the mode of the thread. Keep using the pen and paper.

Write out the P, V relationship so you can code it. to make it easy, use two "if, then" Boolean statements. then you can "or" them together and use the output of the OR to tell you when there is a trend, when it ends and wnen the next trend begins in earnest. Trends overlap it turns out and that makes it a fortunate situation for you because there is always a trend being expressed.
More...


The mode of the thread is asking for specific "hard code"rules , not pen and paper approach because that is subjective
You are using the word "trend" but you don't have a hard definition...
 
Quote from fluttrader:

The mode of the thread is asking for specific "hard code"rules , not pen and paper approach because that is subjective
More...

So, the mode of the thread is asking those, who already did the work to define trend, to hand over to you their 'code' - thereby saving you the time of thinking for yourself.

Thank you for the clarification. You saved me some typing.

- Spydertrader
 
Quote from Spydertrader:

So, the mode of the thread is asking those, who already did the work to define trend, to hand over to you their 'code' - thereby saving you the time of thinking for yourself.

Thank you for the clarification. You saved me some typing.

- Spydertrader
More...

Spydertrader:

Do you trade? If yes, are you a profitable trader?
 
Quote from Spydertrader:

So, the mode of the thread is asking those, who already did the work to define trend, to hand over to you their 'code' - thereby saving you the time of thinking for yourself.

Thank you for the clarification. You saved me some typing.

- Spydertrader
More...


I already have linear regression as a worthy definition for a trend, besides your misplaced criticism,anything interesting to add, mister Spiderman ?
 
Quote from fluttrader:

Can you be more specific ? [/QUOTE

First of all in an uptrend, you want to see higher lows and higher highs, a stair stepping action. On the step or pullback you want to see lower volume, then on the up move you want to see a gradual increase on volume. It would be the exact opposite in a down trend. Look up db phoenix's post from several years ago on price and volume. He is one of the best and excellent marked up, simple to understand diagrams. Here you go. Don't expect to get it immediately. http://www.elitetrader.com/vb/showthread.php?s=&threadid=29005&perpage=40&pagenumber=1

Also strongly consider buying this book it has some good examples too. http://www.amazon.com/Techniques-Tape-Reading-Vadym-Graifer/dp/0071414908
More...
 
You must log in or register to reply here.
Back
Top