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Price action seems to be quite an overused term these days, and there was even a recent rant about it that attempted to bring some honest discussion about the ambiguity of the term. Unfortunately, no agreement could be made on the definition, other than something along the lines of 'movement of ticks up or down in the market'. :crap:

 

What is needed is an indicator that does not repaint, and can provide clear direction what the market is doing now. (not to be confused with predicting what the market will do later). The basic definition of trending prices:

 

Uptrend - series of higher highs and higher lows

Downtrend - series of lower lows and lower highs.

 

lacks a starting point and an end point to determine the low or high. Often times these are done in hindsight, but what if the trend measurement could be drawn concurrently with the current price action?:idea: Similar to planning a roadtrip, if the user knew in advance how many ticks/pips they wanted to measure (the end point), and could agree on where the start point is, then a qualification process could be used to determine if the "price action" can in fact create a 'series of higher highs, lower lows, etc' between the two points.

 

APAMI does exactly this, dynamically:thumbs up: This video overview of the technical details of how apami functions should bring you up to speed.

 

[ame=http://www.youtube.com/watch?v=1VOv-Jqn8gk&list=PLAeDv9ZS_kDMAQa_behuCobmIPyEEPFj6]Zero lag, automatic trend detection indicator for mt4/mt5 explained (APAMI 1/3) - YouTube[/ame]

 

The implementations you are being provided are for metatrader 4 and 5, but conceptually it can be implemented on any decent charting platform that supports a real-time price feed and custom programming language.

I have been referring to this indicator for quite some time on previous threads, and it took a while to put some things together. I use it in my own mechanical trading systems as a first part of the trade lifecycle: detect entry condition. the tradecycle article has one example of how you could implement apami, but the possibilities are technically endless. I suppose using moving averages are somewhat endless also.

 

The full whitepaper covers more technical information about how the indicator is calculated. TBA. But for 99% of you, just watch the videos and throw apami on a chart to see how it works. pay close attention to what happens after the moves "complete"

!APAMI_3.0_FREE_MT4.zip

!APAMI_3.0_FREE_MT5.zip

APAMI_Whitepaper_Abstract.zip

APAMI_3.0_instruction_manual.zip

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