Is trend following limited to buying new highs and selling new lows?

-EntropyTrader · Jul 12, 2003

I wasn't aware that the Orginal Turtles disliked the turtletrader.com website. Seykota recommends the site.
So the question is: where to go for better trend following information?
BTW the www.orginalturtles.org link doesn't work.

OPC · Jul 12, 2003

Quote from bubba7:

Can you process with Boolean Algebra equations that involve either and both price and volume?

Oh, yes! Good point!

OPC · Jul 12, 2003

Quote from -EntropyTrader:

BTW the www.orginalturtles.org link doesn't work.

It does work:

http://www.originalturtles.org/

-EntropyTrader · Jul 12, 2003

Wow - Yeah it does work now. Thanks Brandonf and OPC.

Lightningsmurf · Jul 12, 2003

Like Brandon said, trend following could also include retracements. You establish that a strong trend is in place and buy or sell after the price has retraced in a certain way. A flag is an example of this. I like it when prices form an engulfing pattern right at the mid-line of the Bollinger Bands.

As for breakouts, I would argue that this constitutes buying new highs and lows and isn't substancially different from what the original poster asked about.

PetaDollar · Jul 12, 2003

Moving averages are mathematical definitions of trend. Many traders use them in one way or another, to get out if not to get in.

Three bar pivots are also popular trend following technique. Just look at the 3 min chart on the NQ, you will see a volume increase almost every time price breaks thru a pivot (a bar that sticks up above or below the two adjacent bars).

inandlong · Jul 12, 2003

Quote from OPC:

Yes!

They also claim that they use only reactive indicators. Does anyone know of a proactive indicator, such as one that goes ahead of price? I would like to incorporate that into my tools.

While the stochastic measures what has happened to price, it tends to turn prior to the change in trend. In the sense of its interpretation, it is "proactive", as it is being used here. I prefer the term predictive to proactive.

ElectricSavant · Jul 12, 2003

Check the trix indicator, I am not an expert do the google thing.

Michael B.

WDGann · Jul 12, 2003

Quote from inandlong:

While the stochastic measures what has happened to price, it tends to turn prior to the change in trend. In the sense of its interpretation, it is "proactive", as it is being used here. I prefer the term predictive to proactive.

That's actually an empirical observation.... I wouldn't call it proactive or predictive...

WDGann · Jul 12, 2003

Quote from peterfigliozzi:

Moving averages are mathematical definitions of trend. Many traders use them in one way or another, to get out if not to get in.

Three bar pivots are also popular trend following technique. Just look at the 3 min chart on the NQ, you will see a volume increase almost every time price breaks thru a pivot (a bar that sticks up above or below the two adjacent bars).

That again is an empirical observation.

Empirical observation is great if it works for the individual. I have nothing against that. But as a statician developing systems, most of what people see isn't valid.

Let's say I make a stochastic system or pivot system like what you say... most likely it won't be a profitable system. I'm sure both inandlong and peterfigliozzi have other information to help them weed out fake stoch or pivot patterns...