What's a good tool to determine if the market is trending or consolidated ?

Quote from kut2k2:

It seems senseless to decide to include an arbitrary point (e.g., the center point) in a linear regression. Frankly I question the whole logic of using a linear regression, given that the vast majority of trends are nonlinear, but maybe that's just me. Fortunately there's more than one way to approach the measurement of trends. :)
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OK I agree. Have done some basic tests with this indciator and it gives good indication whether the market HAS been trending, at least my eyes seems to agree. So you could calim it solves some of the problem that other trend indicators have.

However, as I said before, I really doubt whether this is actually useful when determining if the trend will continue.
 
Quote from crazyAtrader:

Channels on the timeframe you are trading.

Anything else is inferior.

Crazy A
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apply that to 3 or 4 markets and you have the trend and the turns
 
djt,eur/usd. dx,xlf lately....djt is a great tell for the es, and if you see the nq,dow,dollar,eur,any of em hitting supp/res in there channel you will often see the es or what ever instrument you are watching turn before your target,djt likes to smudge the lines because its not that liquid,break a tl for a day or 2 but not go anywhere ,while the es rallies further ,you know it's done...divergence between instruments instead of indicators.. watch the uvol dvol ratio ,it only make s 5 patterns,tells you trend day,chop ,reversal,grind up or down and sideways,,,gives confirmation,nonconfirmation on the above divergences
 
It's important to have proper context.

I use oscillators and Keltner channels to determine what's trending and to what degree.

With oscillator crossings I qualify swing tops and bottoms. This, with overlay of Keltner reveals a structure.

Price's relation to qualified swing turns and position in relation to K bands gives a pretty good idea of presence or lack of trending. This technique is also helps in comparing various issues for the same purpose.

This in a nutshell, there are endless other ways to examine how likely the trend is going to persist once one has a practical structure for it.


Regards,

222bc
 
Lots of different answers and there's a very good reason for that as almost any indicator will give you clues in advance if not concurrent with PA to confirm potential trend conclusion/reversal or consolidation/chop. It's a matter of becoming expert at reading your chosen indicator.

Same goes for PA alone and PA/Volume. Looking left to see if PA is traveling into an area of over supply warn you that chop/consolidation is to be expected and running or gap opening through low supply tells you PA is in trend territory. The Float used to be all the rave when it was first published while Wyckoff saw that 100 yrs back.

Others have mentioned structure and again pattern break outs, wave completion, Price ratio relationships, Channels etc. give strong clues.

Combining both PA structure + PA/Volume with Indicators & multiple time frames gives the highest odds of reading a trend movement from a low time frame into the highest time frames.

Everyone gets 10/10 :)
 
your mind is a good,it see's and here's more than a limited indicator,trust it ,when it see's correctly more often than not,trade with it using caution when wrong
 
Bollinger Bands are very useful in this instance.

Look for a bollinger band squeeze which is when consolidation happens, i.e. the bands are very close together. Try using a simple 20 day Bollinger with 2.0 standard deviations.

Bollinger band squeezes also signal a period before the prices regain volatility.

You can also add Bollinger Bandwidth to your charts to make it easier to define the periods of high and low volatility.

CL
 
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