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Showing results for tags 'trend'.
Found 12 results
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Hello guys, Anyone has the code of this indicator? I am trying to find the logic behind it. Trend Magic Indicator FREE Kind regards, Mirko
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%TREND: Absolute value of (CLOSE - OPEN) / RANGE This calculation tells us whether or not the trading day was a trend day or nontrend day. It the close was at the upper or lower range, we will get %TREND reading close to 100%. If market direction was relatively unchanged and the markets closed near the open, we will get a %TREND reading closer to 0%. A high %TREND informs us of market imbalance. The markets usually take breather and will consolidate after a high %TREND day. Therefore, the %TREND helps us anticipate what type of day we are likely to have.
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The inside day candle formation is used to trade reversals when they occur at the top or bottom of the trend. In an inside day candle formation, the second candle (Day 2) has a higher low and lower high than the Day 1 candle.
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Coppock Curve The Coppock curve, created by E.S.C. Coppock, is a technical analysis indicator for long-term stock market investors. It was first published in Barron's Magazine on October 15, 1962. The indicator is designed for use on a monthly time scale. It's the sum of a 14-month rate of change and 11-month rate of change, smoothed by a 10-period weighted moving average. Coppock, the founder of Trendex Research in San Antonio, Texas, was an economist. He had been asked by the Episcopal Church to identify buying opportunities for long-term investors. He thought market downturns were like bereavements and required a period of mourning. He asked the church bishops how long that normally took for people, their answer was 11 to 14 months and so he used those periods in his calculation. A buy signal is generated when the indicator is below zero and turns upwards from a trough. No sell signals are generated (that not being its design). The indicator is trend-following, and based on averages, so by its nature it doesn't pick a market bottom, but rather shows when a rally has become established. Coppock designed the indicator (originally called the "Trendex Model") for the S&P 500 index, and it's been applied to similar stock indexes like the Dow Jones Industrial Average. It's not regarded as well-suited to commodity markets, since bottoms there are more rounded than the spike lows found in stocks. source: Wikipedia This indicator may be displayed as a curve, or as a histogram The color.mode setting is 0 for histogram, 1 for curve A delta line (Diff) is added for faster fractal analysis. (daily or intraday) note: This EasyLanguage indicator was written in MultiCharts. I have not tested it in TradeStation or other compatible programs. Please refer to your users manual for importation instructions. TL_Coppock.pla TL_Coppock_Curve.txt
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MA Ribbon Description: MA Ribbon cuts through the noise to display the strength of a trend The strength of the trend is shown via the difference between current bar's MA and the MA of X bars ago. (usually half of the MA length) When the trend strength is positive and increasing, the indicator will display an upward ribbon that is increasing in width. When the trend strength is subsiding, the ribbon narrows. Eventually when the market reverses, the ribbon will change color, then reverses direction. Note: This EasyLanguage indicator was written in MultiCharts. I have not tested it in other compatible programs. Please refer to your users manual for importation instructions. Your comments and rating of this indicator is appreciated. . MA_RIBBON_(MultiCharts).pla MA_Ribbon_(TS).txt
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During my trading journey I regularly encounter very interesting people from various fields. Their unprofitability in trading is what often unites them, however, which is why they are seeking advice. Aspiring traders are unable to reap consistent profits off the financial market despite having been involved for many years and having tried various approaches. I assert that this is due to the lack of a fundamental understanding of trends, which is why my attempt is to demonstrate how price action is interpreted correctly. I personally had the luck to be taught by a mentor myself, and forged a trend trading strategy on top of this precious teaching. The nature of trends is the first thing an aspiring trader needs to fully comprehend. Trends do not stop from one moment to the other but last for a significant amount of time. A trend evolves in a sequence of support and resistance levels along its way, and reversals always take place after breaking an aforementioned level. Hence, there will be enough time to recognize a reversal and to adjust your position accordingly. If you look at the 1 hour chart of the ES for example. You will notice a repeated pattern of uptrends (higher highs and higher lows), downtrends (lower highs and lower lows), as well as support and resistance levels along the way. A break of such a level is taken as an entry opportunity to catch a reversal and follow a newly established trend. You never do anything prematurely and always wait for the market to tell you what to do. By doing so, you will avoid entering and exiting positions based on gut feel. That is all you need to boost your chances of becoming profitable. Let us think back to our childhood when we got our first bike. Our parents might not be particularly good cyclers but they knew one thing: to ride the bike we must be able to balance. Consequently, they do not bother teaching us which gear to use, or how to do dirt jumping. They leave it at the basics. But this is precisely what aspiring traders venture into. They start off with the most challenging stunts like scalping and picking tops without knowing anything about chart reading. Seeking answers in indicators is one of the major mistakes they succumb to. Whenever an aspiring trader comes to me, I will ask him to turn off all indicators, then give him the basic understanding he needs to start trading profitably. This includes price action, understanding the battle between bulls and bears, and trends. After that we go into more details such as risk management by using stop loss orders properly. To my surprise, many are able to find entries and manage positions with a bit of assistance within a few weeks, or have developed a totally new strategy with the help of the basics I provided. Most importantly, they do this without looking at any indicators that they used to love so much.
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Instantaneous TrendLine by John Ehlers Note: This indicator was written in EasyLanguage. Please refer to your users manual for importation instructions. Your comments and rating of this indicator is appreciated. Instantaneous TrendLine.txt
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What has worked for you as far as determining what direction to trade in -- long or short, based on the market and stock past trends? For example, do you only go short with 100% of your trades if the market is below 200 DMA? Or do you look at shorter moving averages on both the market and the stock you are about to trade, and balance out with some short and some long positions? How has your approach worked in choppy markets that are possibly establishing new trends? I'm experimenting with different variables, such as if the stock moving average over last 90 days is trending up and the market day moving average is basically flat, then I'd go long on my position, but don't go long with more than 70% of my positions... Btw, I'm a swing trader in equities only strategy, with up to 10 concurrent positions, and average hold time of 14 days.
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Without the inclusion of mass (M) in the formula ( because best I can tell the instruments traded have no mass ) - what are the best measures of instantaneous acceleration of price (or derived trading information) ? ( and I swear, Tams, if you ask for a picture, I will blow you up with a smilie ) Thanks.
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iADX -- an Improved Mouse Trap This is just an ordinary ADX... I tweaked the presentation for easier reading. The ADX line is shown as a histogram, with up and down colors. The color is based on the slope of a 9 XMA. When the ADX line is declining, the width of the histogram becomes narrow, that is because we are only concerned with a rising ADX slope. In the chart illustration below, I have included the original ADX for your comparison. enjoy! p.s. good news to MultiCharts users: James has added PLA as a valid upload file format. You can click on the PLA file below and import the indicator automatically into MultiCharts. TradeStation users are invited to post your ELD. iADX.txt iADX_(MultiCharts).pla
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VIDYA - The Variable Index Dynamic Index by Tushar Chande VIDYA is basically an adaptive exponential moving average. The adaptation speed is determined by market momentum, as measured by "AbsCMO", the absolute value of the Chande Momentum Oscillator. This indicator is described in Chapter 3 of Dr. Chande's book "The New Technical Trader". VIDYA_(MultiCharts).pla
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Think - What is the intent of the value area? The value area is the range of prices where the majority (70%, 68.2%...) of trades occur. So - Given a dataset with trades (date/time, price, lot-size) I can easily compute a POC-TPO style value area or a Volume-Weighted value area, right? Yes, the numbers can be computed, but they lack meaning when the dataset contains multiple distributions or even a single distribution that lacks rotation. What? What? What? Consider multiple distributions, the most simple example is a day with congestion and price rotation around some set of prices, then a midday fast far away from the earlier prices followed by congestion and price rotation around the new price area. A volume profile would show two distribution peaks with little volume between. A market profile would similarly show two distributions with single prints between them. The computed value might be between these two distributions. The value area POC or Mean, value high and value low reference prices are meaningless. Consider a single distribution from a day in which price had micro-rotations (e.g. up a few ticks, down a few ticks) during the entire day, however the majority of 30-minute periods price made higher highs, higher closes, and higher lows. This is a trend day. Each time we compute our MP reference prices they are moving higher (that is significant) but as far as producing levels from which to trade the computed value area is of no use. Think - What kind of day has a value area? The volume or TPO distribution should have a central high area and low edges. We could have an idealized bell curve, but an asymmetric blob is more likely. The high volume area can be near the top, middle, or low. There should be some price rotation occurring around the high volume areas. As a general guideline, I want the value area for the ES,ZB,and ZN to have prices with five or more TPOs. I adjust the threshold for other markets, e.g. four or more TPOs is sufficient for ags (corn, soybeans, wheat). Some authors use the term balance or bracketing to mean a market with price rotation. Conclusion - Keep in mind that just because we can compute a value area, that doesn't mean we have useful numbers to trade with. Markets that are consolidating or congesting have value areas. Trending markets do not.
