%TREND Calculations

[Soultrader 12]

%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.

[walterw 10]

ok Soul thats great ¡¡ I asume range is high - low ?.... do you have some archive of this in excell something historical ? this makes great sense its like squeeze, (contraction/expansion) from day to day concept type... thanks Soul again ¡¡ cheers Walter.

[Guest cooter]

Does RANGE = ATR (average true range) in this equation? Is there a Tradestation indicator for this?

[Anonymous 11]

The short answer is no.

 

Range = High - Low

 

Having said that, one could try to substitute range with true range. Soul said he uses Value Area High and Value Area Low also. So I am thinking he gets two sets of numbers: the traditional %trend and the Value Area % trend.

 

If that is correct, then I would gues one could get a True Range % trend.

 

***edit: Just wanted to add, that the tool is measuring market facilitation. That is, how effectively price moved thru the period. Or in a word, trend. Thus True Range may not be appropriate for the calculation. However, I could be wrong.

[Soultrader 12]

Range is the high minus the low. I personally just use the %TREND. With value area, I simply watch whether the value area is overlapping or not. Walterw, can you pm me your email... I can send you a simple spreadsheat that I use. It has data going back to May of 2006.

[Guest cooter]

Can you give us a visual representation of what you are talking about then?

 

Thxs.

[Anonymous 11]

Range is the high minus the low. I personally just use the %TREND. With value area, I simply watch whether the value area is overlapping or not. Walterw, can you pm me your email... I can send you a simple spreadsheat that I use. It has data going back to May of 2006.

 

Yes. I was thinking about it and the range of the output is 0-1 and it is possible to open up and close outside of the Value Area.

 

Mark Fisher's Pivot Range also can be used in this same way. It often narrows prior to volatility breakouts.

[walterw 10]

This would be the tradestation indicator for %Trend.... enjoy cheers Walter

% TREND.ELD

[Guest cooter]

Thanks for this WalterW.

 

I get a "Attempt to divide by zero" error when I try to run this in TS 8.2.

 

Any suggestions on how to fix it and get a working copy?

[Blu-Ray 10]

Thanks for this WalterW.

 

I get a "Attempt to divide by zero" error when I try to run this in TS 8.2.

 

Any suggestions on how to fix it and get a working copy?

 

It needs to be on a daily chart.

 

 

Walterw

 

Thanks for the indicator, I slightly modified the code just for easier reading

 

value3= (value2 / value1)*100;

 

 

Cheers

 

Blu-Ray

[Blu-Ray 10]

It needs to be on a daily chart.

 

Apologies Cooter

 

I got the same message as you and thought it only worked on a daily chart, however, after opening a new chart it does work on intraday as well.

 

Blu-Ray

[Guest cooter]

No problem, Blu-ray.

 

Still doesn't run on TS 8.2 - either daily or intraday charts?

 

Anything I can do to make it run?

[walterw 10]

Hi cooter, it works on mine, any way I will take a look at it, maybe make some diferent version.... cheers Walter.

[walterw 10]

cooter: you want to try this one, works in all time frames.... cheers Walter.

% TREND 2.ELD

[Guest cooter]

Thanks, that did the trick.

[johnnydaymon 11]

Thank you walter! Be sure to check out estate1997 STO HULL V1 here ; http://www.traderslaboratory.com/forums/trading-indicators/2082-screaming-fast-moving-average-9.html#post180724 estate1997's resembles yours a touch.

Edited May 26, 2013 by johnnydaymon