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AutresTemps
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« on: April 12, 2007, 06:54:16 AM » |
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Hi,
The other day I came across a problem. It’d be interesting to know how traders usually solve it. Most strategies and many indicators do really work in trend markets. But in practice how can it be seen whether a certain change in the market is a trend. Books write that this can be determined by volatility. First, it’s not clear how it is calculated (actually, it’s also interesting) and second, this index indicator looks similar to the average patients’ temperature around a hospital. You see, there are both trend components and sideway components and volatility show them as a general trend. So, please, tell what exactly can be considered a trend and how this can be explained to silly machine.
Your thoughts much appreciated.
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ITRAD0R
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« Reply #1 on: April 12, 2007, 09:03:21 AM » |
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The definition of trend is simple! Uptrend is a consecutive higher high with consecutively higher lows and the downtrend is the opposite.
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AutresTemps
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« Reply #2 on: April 13, 2007, 04:34:13 AM » |
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I’ve come across such a definition, but haven’t paid attention to it. It seemed to me some kind of forced and unpractical. In theory it sounds good, I’d say universal. But first, it’s not quite clear what consecutive higher and lows mean. How to choose them? Second, it’s doubtful that this definition can be coded. Besides I have an example where according to this definition one can create different so to say highs and lows, and thus consider the following to be a trend or not.
Perhaps there are other methods of determining a trend, not abstract, but such that can be coded in practice. Or I haven’t completely made out this definition. Then, please, help. I’ll appreciate any advice greatly.
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ITRAD0R
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« Reply #3 on: April 13, 2007, 11:19:58 AM » |
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I didnt say it was easy just simple,I have found that the simplest of things is hard to code. lets say EUR/USD allTime High is 136 maket breaks through and make high at 140 then sells off and makes anew high at 145. If the low was 136.01 then thata a higher low and the higher highs are evident.
Trends have amplitude just like sideways patterns the key is whipsaw which is what you are trying to deal with.
hope that helps
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AutresTemps
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« Reply #4 on: April 16, 2007, 02:51:18 AM » |
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Thanks for your answer!
First of all, I’d like to get clear and effective algorithm, which would say me: this section is a trend and that is not. This place is where the trend starts and that’s where it ends. Later on I look at the results of the work and can make a conclusion. Done! There are more trends here – so I will use this given strategy. And on another chart there sideways almost everywhere – so I will use quite different tactics. But how can the situations in strategy be delimited? Where should trend tactics be used and vice versa?
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Octant
Newbie
Posts: 1
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« Reply #5 on: April 24, 2007, 04:39:02 AM » |
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Hi,
I’ve decided to enter the discussion. AutresTemps seems to desire everything and at ones. He wants the definition to be both convenient and easy for coding, and, most likely, to work in all situations and earn money. Unfortunately, it’s simply impossible. ITRADOR’s definition seems to me the most felicitous. At first it may look intricate, but I’ve never came across better one. I think AutresTemps should sort it out better (sure, if there is a desire) and not look for the universal panacea.
Wishing you success in your trading.
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