Mathematically computing a trendline

ProfLogic · Jul 25, 2011

Quote from pattern39:

computing a trendline is easy. The hard part is getting the start of the trend right, something that requires sophisticated A.I. to do well...

Yup

Step #1 -
Objectively define "Trend" as it applies to your specific charting environment.

rosy2 · Jul 25, 2011

Quote from ProfLogic:

The key is to do it objectively in real time.
Not so easy.

i do this by taking the slope of the current point and the point from N seconds ago. I use the esper library which has a slope function
:eek:

ProfLogic · Jul 25, 2011

Quote from rosy2:

i do this by taking the slope of the current point and the point from N seconds ago. I use the esper library which has a slope function
:eek:

Perfect but how do you overcome the inconsistency of unbalanced chart bars. (If using time or tick charts.)

rosy2 · Jul 25, 2011

Quote from ProfLogic:

Perfect but how do you overcome the inconsistency of unbalanced chart bars. (If using time or tick charts.)

i am not a professor. whats an "unbalanced chart bar"

TIKITRADER · Jul 25, 2011

Look for the post from Tums
How to draw tapes... See if this helps

http://www.elitetrader.com/vb/showthread.php?s=&postid=2193328&highlight=draw#post2193328

Random.Capital · Jul 25, 2011

This is only a hard task if there isn't a precise definition of what constitutes a trend. With such a definition, it's easy peasie.

ProfLogic · Jul 25, 2011

Quote from Random.Capital:

This is only a hard task if there isn't a precise definition of what constitutes a trend. With such a definition, it's easy peasie.

Yup

ProfLogic · Jul 25, 2011

Quote from rosy2:

i am not a professor. whats an "unbalanced chart bar"

Time Bar Chart - A Bar chart where each bar carries a unique volume weight because each specific market/symbol completes a random number of transactions per minute and there are a random number of shares or contracts traded per transaction.
Unbalanced Bar Chart

Tick Bar Chart - A Bar chart where each bar is made up of a fixed number of transactions per bar and still carries a unique volume weight because each specific market/symbol completes a random number of contracts per transaction. (GLOBEX's decision in 2007 to arbitrarily group transactions virtually destroyed the ability to balance this chart type)
Unbalanced Bar Chart

Volume Bar Chart - A Bar chart where each bar is made up of a nearly fixed number of shares or contracts traded per bar but still carries a unique volume weight because unless the volume is capped on each bar there is the potential for contracts or shares can roll over to the next bar based on larger transactions being applied to the chart.
Unbalanced Bar Chart

Constant or Capped Volume Bar Chart - A Bar chart where each bar is made up of a fixed unvarying number of shares or contracts traded per bar.
Balanced Bar Chart

SnakeEYE · Jul 25, 2011

Two 8EMAs slope envelope.One of the high, other of the low.There you got a trendline and a tape - two in one.

ProfLogic · Jul 25, 2011

Quote from SnakeEYE:

Two 8EMAs slope envelope.One of the high, other of the low.There you got a trendline and a tape - two in one.

The OP stated they wanted to basically compute a trendline of the form (y - y0) = m (x-x0). They stated wanted to use this to determine box ranges and triangles.

Two 8 EMA's slope envelope alone will not allow the OP to compute their goal.