Is there an indicator that “normalizes” pullback signals against varying trend strengths?

easymon1 said:
"LRMA on the upper, then below is price vs the LRMA with two more LRMA"

Measuring trend strength would be a necessary 1st step in producing what OP is looking for.
For the 2nd step "predict what a reasonable pullback zone can be based on the strength",

is your LRMA study designed to predict the depth or duration of a
Reasonable Pullback Zone Valley
for the Correction Wave
based on the Trend Strength?

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Its the "inertia" study in ThinkorSwim.

Basically, its measuring price changes relative to estimates of a linear relationship between time and price. You have to remember, though, its not a point estimate, and the distribution of error terms is unknown. So you can't really use it to "normalize" trend or momentum.

Its like calculus. An LRMA is essentially a way to differentiate price.

This study is 'differentiating' a differential of price and a linear estimate of trend.

https://tlc.thinkorswim.com/center/reference/thinkScript/Functions/Statistical/Inertia

You could say its measuring momentum, or deviation from trend, or trend strength.
 
There is no way to know when a trend ends. However you can determine what is happening on a lower time frame by using TA and PA. For example overall the ES has been in a bullish uptrend over long periods of time.

In a lower time frame you can see a downward trend that is expressed with LH and LL. So if you are trading the lower time frame it's safer to go short which I did recently.

I would say TA is more of an art than a science. Using lagging indicators will not work against real traders that can read price action like seeing the lady in red in the Matrix.

This can only come with screen time. I am not saying spend 8 hours a day looking at charts, but you do need to put in at least 1 hour per day till you get 10,000 hours.

Also, you don't need to know when a trend ends, that is what a stop is for. As long as your overall win rate is above 55%, you will do well if u can manage your risk and not over or revenge trade.

Don't let the perfect be an enemy of the good. There is no 100% win rate based on indicators alone.
 
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