Measuring Trend

crazyAtrader · Sep 13, 2011

Quote from kut2k2:

That's not even accounting for the fact that trendlines are almost always useless for short-term trends.

Read above guys, funny stuff.

Crazy A

kut2k2 · Sep 13, 2011

Quote from SnakeEYE:

why complicate things when you can get it visually pretty clear?

but if you have this kind of indicator - that`s great!i can only congrat you!

I'm still looking for that indicator. Good luck with your trend lines.

baro-san · Sep 13, 2011

Quote from kut2k2:

... There are no measurements produced by channels and trendlines. They are utterly worthless for measuring trends. ...

Keep your mind open: if that's what you believe, it doesn't mean it is so. A channel has a width, a slope, a structure, and the price it includes is obviously measurable.

kut2k2 · Sep 13, 2011

Quote from crazyAtrader:

Read above guys, funny stuff.

Crazy A

You need HH, HL, LH, LL to draw trend lines. If you think those occur in the short term, the joke's on you.

baro-san · Sep 13, 2011

Quote from kut2k2:

When I use a technical indicator, I automatically get a number aka a measurement. You're telling me I have to jump through all sorts of extra hoops to squeeze some sort of number out of trendlines. This comes across as archaic at best in the age of automated trading strategies.

That's not even accounting for the fact that trendlines are almost always useless for short-term trends. Whereas an indicator can generally be applied to a trend of any duration.

It seems that you think your view of the trendlines merits is correct. Let me tell you that I know for a fact, that you're mistaken.

baro-san · Sep 13, 2011

Quote from kut2k2:

You need HH, HL, LH yada yada to draw trend lines. If you think those occur in the short term, the joke's on you.

George C., post an example where they don't. You may be right (not).

kut2k2 · Sep 13, 2011

Quote from baro-san:

It seems that you think your view of the trendlines merits is correct. Let me tell you that I know for a fact, that you're mistaken.

OK, tell me how you get measurements of trend strength and/or trend quality out of them and I'll be convinced.

kut2k2 · Sep 13, 2011

Quote from baro-san:

Keep your mind open: if that's what you believe, it doesn't mean it is so. A channel has a width, a slope, a structure, and the price it includes is obviously measurable.

Until you explain how any of that translates into a measurement of trend, you've demonstrated nothing.

kut2k2 · Sep 13, 2011

Quote from baro-san:

George C., post an example where they don't. You may be right (not).

OK what's the minimum number of points you need to draw a reasonable trendline? I only need 4 bars for the KER.

Is a 4-bar trendline something that makes sense?

I don't know, and don't care enough to any testing myself. I assume those who do care about trendlines have done or are willing to do this testing themselves.

Colyn.Rosenthal · Sep 13, 2011

Quote from kut2k2:

OK what's the minimum number of points you need to draw a reasonable trendline? I only need 4 bars for the KER.

Is a 4-bar trendline something that makes sense?

I don't know, and don't care enough to any testing myself. I assume those who do care about trendlines have done or are willing to do this testing themselves.

Mathematically you can do it with 3 points.
Either HH, HL & HH or LL, LH, LL can define bull or bear trends. The arc of the first two points can be applied to the 3rd point to predict the arc of the 4th. This is trend direction. Trend strength comes from the level of price pull back or rise associated with the HL or LH of the trend. I've always called this the rubber band effect. When the energy is released the target HH or LL distance measures strength. Took me years to prove this but it works flawlessly.