Indicator for spotting trends vs. ranges

[hardyards]

Quote from WmWaster:

Does anyone know what software can do that?

Plus record volume(bid/ask) on different price levels.

Thank you.

Let my name be your guide ... the information is useless until you figure out how to use it .... I will give you another piece of advice " Dont knock yourself out watching level 2.
Oh and one more" piece .... " Someone tells you that you dont need volume to trade successfully, just ask them why they are handicapping themselves"

 

[WmWaster]

Quote from hardyards:

Let my name be your guide ... the information is useless until you figure out how to use it .... I will give you another piece of advice " Dont knock yourself out watching level 2.
Oh and one more" piece .... " Someone tells you that you dont need volume to trade successfully, just ask them why they are handicapping themselves"

I understand what you mean.

However if I know what they mean to me in trading, what software or where supplies such kinds of infomration?

Thank you!

 

[murray t turtle]

Quote from davelansing2004:/murray TT

No offense, but Vic was quoting average % change for trends- the most important detail he left out was the dispersion of the data points that make up the average. Why's this important?

If Vic's studies lead him to state that the average intermediate uptrend is a 25% move but the dispersion is +/- 15%, using the average is useless for real-time trading (the spread could be anywhere from 5% to 40%).

==============
Helpful points Dave , probably even more so since trends have a habit of doing better than average;
however something similar [average time, average price %] can be useful for both real time trading & end of day trading.

And would agree with your implication the trend is a friend;
more so than 25%

IF, to use stock indexes/ETF ,IF average uptrend is 25%;
wouldn't want to trade as big or as wide stops if its up 33.3%.[Parabolic stop & reverse principal, not a mechanical use of it]

If to use another realtime example the average bull market uptrend is 3 years, your point is well proved late 1990's,1920's;
but back to realtime /more examples ,mine is proved 1933-36 & today[ES,YM,DIA DOW,SPY] & proved most of JUNE, & realtime.

QQQQ has had 3 uptrend years; but realtime its down about $0.66, down last 6 months, down on 6-6-06.Good downtrend

Could be even more specific/real time but dont care to;
note my comments are concerning indexes, or ETFs,
NOT real estate, tulips , or other markets.

 

[ElectricSavant]

Oscillators

Quote from svrart:

Hi,

What indicators can one use to know if the market is going to be in a trend or a range?

eg. Futures X is trending strongly up. Using other indicators, feel etc i decide that the trend is about over. Then what indicator can i look at, to know if X will be in a trading range or on a down trend?

Please dont talk about the risks of going against a trend. My only question is - what indicator to use to tell if the future action will be a range or a trend.

Thanks,
Sridhar

 

[hardyards]

Quote from WmWaster:

I understand what you mean.

However if I know what they mean to me in trading, what software or where supplies such kinds of infomration?

Thank you!

I run my own programme so can´t really help. However a question to this effect on ET should net you you some prospects.
Try to run some trials of each one to gauge the differences.

 

[toc]

Sridhar,

For how long have you been trading?

 

[Buy1Sell2]

Hi,

What indicators can one use to know if the market is going to be in a trend or a range?

eg. Futures X is trending strongly up. Using other indicators, feel etc i decide that the trend is about over. Then what indicator can i look at, to know if X will be in a trading range or on a down trend?

Please dont talk about the risks of going against a trend. My only question is - what indicator to use to tell if the future action will be a range or a trend.

Thanks,
Sridhar

It's typically going to be a combo of RSI, MACD, Bollinger Bands AND Price. Best way to define trend is by using multiple time frames to find overall trend on thelarger frame and then use an oversold or overbought condition with fresh momentum on the shortest frame in the direction of the trend to enter. Never risk more than 2% of TLNW on any one trade/idea.

 

[murray t turtle]

[Partial QUOTE="Buy1Sell2, post: 4264030, member: 45994"]It's typically going to be a combo of Bollinger Bands AND Price. Best way to define trend is by using multiple time frames to find overall trend on the larger frame and then ...... Never risk more than 2% of TLNW on any one trade/idea.[/QUOTE]
%%
Wise words- i use most of them myself[not RSI or Macd];
Donchian channels can help.I call a range =a sideways slop chop trend

 

[GloriaBrown]

I don't think there is an indicator that can predict that. If you use the ADX with plus and minus DMI, that will at least tell you whether you are in a trend or range at the present moment. Use other indicators to make good risk reward decisions from there.

Adx doesnt work well in backtest at all especially trend change from up to down that kind of extreme case.

 

[murray t turtle]

Hi,

What indicators can one use to know if the market is going to be in a trend or a range

Please dont talk about the risks of going against a trend. My only question is - what indicator to use to tell if the future action will be a range or a trend.

Thanks,
Sridhar

%%
Study SPY for 10 years;
with 200dma- that may help.Not a prediction- that is why they named it weather forecasting...……………………………………………………………………………………………………………………………………………………….