Identify if FX is trending

Is there an indicator (other than ADX, which seems a bit slow to react) that indentifies whether an FX pair is trending?

I am experimenting with using an RSI change of direction, then confirmation that a new trend is being established and it is not just a 1-2 pip whipsaw. I am using 1min timescale and am in and out within 4-8 pips.

Thanks - Andy

Hi Andy.

I don't know how good you are on the trigger finger, but I myself know for sure that 1Minute has proven itself completely unmanageable / unable to provide any sort of consistent and sustainable profit.

I don't know your reasons for this either.
But if you REALLY want to know whether a pair is trending or where it's headed, you're not going to get away with less than a zoomed out daily / weekly chart to get an idea of what is going on.
Obviously knowing for sure when there's a strong trend going on isn't always easy, but a telltale sign will be a behavior like we have seen in the EURUSD / GBPUSD lately.

Sustained bursts of price moving one way without much pause or pullback for 600-900+ pips. A lot of pips moved in a small amount of time.

That's your best indicator imho, not actual "technical indicators".

I strongly urge you to take caution with small timeframes. I personally have stopped trading below 1h/4h a long, long time ago and really only use the sub-daily timeframe ONLY to finess entries into what I get from daily/weekly/monthly.


Take care,

SeekingLight

I ditto what Seeking has said.

I find that it is helpful to use some kind of channel (Donchian in example below) which will the show the shift of price to one side of the channel from the other. If price stays on one side for a while - it's a trend.

It is nearly impossible to ID a trend on any TF less than H4 I think.

The Williams %R is a 28 period oscillator that I find helpful in confirming a range or trend.

Best wishes


.

You may want to read this .. it's about trend and timeframe ...
http://specutrade.blogspot.com/2007/...-to-trade.html

if you think that ADX is too slow, try using the underlying DMI indicator. or you can just use a small input for ADX. can you tell i like welles wilder? LOL

is Price Action in Tick Chart useable?

Doesn't John Ehlers have some indicators
that identify trending and non-trending
(that he calls cycling) markets?
I like some of his other stuff!
I don't know how much there is for MT4.
Anyone know?


FXS

Thanks for your comments. I had forgotten about DMI, so will have a look at that!