Trending Market Indicators

Hi,

Many methods and indicators had developed to investigate whether the market is in a trend mode. However I had yet to see gd indicators which provide CONSISTENT indicator to whether the current market is in trend or trading range mode. Personally I use MA to indicate the trend. I welcome a discussion on what gd methods and indicator to seek identifying of trend and trading range mode.

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Kind Regards.

Dan05,

I also use MAs to identify trends.
But, as others will inform you, you get whipped about in rangey markets.
I tend to identify trend markets when MAs do not touch the price bars.
And rangey markets are when the MAs are within a notable-high and notable-low channel ( horizontal ).

ADX used on a lower timeframe is also good. ( if you trade on 30-min bars, ADX on a 10-min give good prior warning of trend-exhaustion )

unfortunately, there is nothing that I have found to be "consistent".
Its really all about surviving the rangey bits until the trend re-appears. ( money management )

I just remembered !!!

There is a poster, called a320, who doesnt post often, who, on Tactical Trader ( am I allowed to say that ? ), uses the 50% point of the high and low of the past 3 days, as a means of identifying whether the market is bullish or bearish.

I have run into this post just now (serendipity).
So if for example I would like to trade ranging market using CCI (I cannot figure out yet if the normal devaition in computation of this formula is perfect, doesnt matter). And then obviously, CCI will not work while moving to trend. So If I work on 5 min time frame I need something to tell me when the trend starts.
What timeframe and which indicator?

blancspa said:

I have run into this post just now (serendipity).
So if for example I would like to trade ranging market using CCI (I cannot figure out yet if the normal devaition in computation of this formula is perfect, doesnt matter). And then obviously, CCI will not work while moving to trend. So If I work on 5 min time frame I need something to tell me when the trend starts.
What timeframe and which indicator?

Click to expand...

blancspa, are you related to Jesus ? Resurrecting the dead and all that ....?

The best indicator for figuring out if a market is trending or not is this:

pull up a chart.
if all the funny colours go diagonally from one corner to another, then there is a trend.
if all the funny colours are bunched in a flat horizontal line, then there's no trend.

go on, try it .....

rathcoole_exile said:

blancspa, are you related to Jesus ? Resurrecting the dead and all that ....?

The best indicator for figuring out if a market is trending or not is this:

pull up a chart.
if all the funny colours go diagonally from one corner to another, then there is a trend.
if all the funny colours are bunched in a flat horizontal line, then there's no trend.

go on, try it .....

Click to expand...

haha... and I guess you were expecting me to ask: "show me"
nice girl on the photo

all indicators succeed when market is trendy.

all indicators fail when market is ranging.


conclusion : DONT F**CKIN G USE indicator?

everyonerich said:

all indicators succeed when market is trendy.

all indicators fail when market is ranging.

conclusion : DONT F**CKIN G USE indicator?

Click to expand...

What complete and utter nonsense, ALL indicators fail, words fail me.

Any oscillator will highlight turning points with exceptional accuracy in a range, so theres one perfectly good example that proves you wrong. As for indicators working well in trends, again, complete nonsense indicators completely suck in trends they are at best 50/50 ! indicators work far better in ranging markets

Quite why you'd need a bunch of coloured squiggly line to indicate if something is clearly trending is beyond me given that 50% of the time the indicator is going to be wrong

Take an indicator such as ATR is the ATR incorrect simply because the market is ranging ?

The problem is people dont understand indicators, how to use them, and when to use them, and by the time they do know, they dont really need em

zupcon said:

The problem is people dont understand indicators, how to use them, and when to use them, and by the time they do know, they dont really need em

Click to expand...

How true is that. A mountain of wisdom packed into one succinct and well written sentence!

zupcon said:

What complete and utter nonsense, ALL indicators fail, words fail me.

Any oscillator will highlight turning points with exceptional accuracy in a range, so theres one perfectly good example that proves you wrong. As for indicators working well in trends, again, complete nonsense indicators completely suck in trends they are at best 50/50 ! indicators work far better in ranging markets

Quite why you'd need a bunch of coloured squiggly line to indicate if something is clearly trending is beyond me given that 50% of the time the indicator is going to be wrong

Take an indicator such as ATR is the ATR incorrect simply because the market is ranging ?

The problem is people dont understand indicators, how to use them, and when to use them, and by the time they do know, they dont really need em

Click to expand...

same thing..

all indicators succeed when market is trendy. = 50%
all indicators fail when market is ranging. = 50%

conclusion?

btw.. if you said another 50% would be the fundamental.. but is that mean.. indicators probably are completely useless in short timeframe? bcoz fundi most of the time seems to cater long term.. crap or whatever..

no tsure about that

could be that the information embedded in price follow historical pattern by premises of fractal geometry (something to the contrary of Brownian motion, random walk and normal distribution), pointed out by Mandelbrot. Like DNA chromosoms pattern, each unique for unique market. Timeframe doesnt matter unless you want to buy and hold for ever.
on the lower timeframe patterns may muliply therefore your brain cannot process them accurately.

Conclusion:
Indicators may work in this circumstances, however it may be necessary to understand their characteristics and where do they come from before attempting to apply them. As was already mentioned.
Sounds common sense to me.

blancspa said:

could be that the information conveyed in price follow historical pattern by premises of fractal geometry (something to the contrary of Brownian motion, random walk and normal distribution), pointed out by Mandelbrot. Like DNA chromosoms pattern, each unique for unique market. Timeframe doesnt matter unless you want to buy and hold for ever.
on the lower timeframe patterns may muliply therefore your brain cannot process them accurately.

Click to expand...

don't mention Brown and Mandelson around here m8 !!

Oh, not those guys ......

blancspa said:

nice girl on the photo

Click to expand...

Thanks !

my Daddy says I'm a bit young for trading and certainly too young for staying up all night on T2W but I enjoy it.
You're only young once I say !!!