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Trending Market: What is the best indicator

  • #1
  • First Post: Mar 4, 2011 11:35am Mar 4, 2011 11:35am
Hello

Out of a visually aid, what is the best indicator or technique to determined that a market is trending.

I have developed and coded a counter-trading system. I'm looking to filter my entry. The idea is to prevent any counter-trend entry in heavy trending market.

Now my 1 millions dollars questions:
How do I determined that a market is trending. Visually, it is easy, coding it ???

Any help trully appreciated

Martin
  • #2
  • Mar 4, 2011 11:57am Mar 4, 2011 11:57am
I'm not a coder, but I think you can use multiple zigzags with different lengths looking for hh, hl, or lh, ll. Or maybe a set of moving averages taking the angle in account.

hope it helps...
  • #3
  • Mar 4, 2011 12:36pm Mar 4, 2011 12:36pm
Quoting 0002097
I'm not a coder, but I think you can use multiple zigzags with different lengths looking for hh, hl, or lh, ll. Or maybe a set of moving averages taking the angle in account.

hope it helps...
i have heard some people use the 30 ema's hi low to stay out of some trades.
  • #4
  • Mar 8, 2011 2:07pm Mar 8, 2011 2:07pm
I'm not a fan of bollinger bands as an indicator, but you could also use them with a long-term period so that it bounces between the top and bottom bands.
  • #5
  • Mar 22, 2011 12:03pm Mar 22, 2011 12:03pm
Hello all,
This is my first post, so please don't flame me to death. I use a simple system that has worked great on demo/live accounts. On my demo, i've seen 13% growth per week, and on my live about 7%. The overall trade win percentage is over 90%. I use a simple method that requires 3 candlestick formations that, after looking at charts for hours on end, seemed to dictate a "true" trend reversal rather than a "false" trend reversal that may carry over the other way, but only shortly. The method I use looks at the present candle and the candle before. If it is an exact opposite of the candle in the same position as the previous candle, but leading in the opposite direction, it indicates a run (from what I've experienced). For example, uptrending EUR/USD on 15 min time frame, previous candle 7 pips large, tops out, little to no shadow, yet the present candle is the same length in the opposite direction. From here, I choose to sell, as the trend is now reversing. Easy 10-15 pips in the pocket, and on to the next interval. I've found this to be most successful in 15 minute time frame, and have even written an EA to buy/sell based on this as well as +1, +2 from the open/close of the candle, and -1, -2 from the open/close of the candle, and it has seen 7 successful trades, with no DD. I don't know if it is beginner's luck, but it sure is working for me. Hope this helps show the insight of a noob (simple, easy). I'll try and post a pic of what I'm talking about.
Attached Image (click to enlarge)
Click to Enlarge Name: danirantigravity.jpg Size: 36 KB
  • #6
  • Mar 22, 2011 12:49pm Mar 22, 2011 12:49pm
The term best is not appropriate. 200 SMA does the job very well. But the trick is that is must be applied to many different time frames. Until Metatrader lets you put in custom time frames for example 34 minute or 162 minute it is not robust enough. Other paid for platforms allow more fine tuning. E signal or CQG.
  • #7
  • Mar 23, 2011 3:09am Mar 23, 2011 3:09am
Quoting thompjw31
Hello all,
This is my first post, so please don't flame me to death.
Welcome aboard thompjw31

I will look for that new setup also.
Happy trading time

Martin
  • #8
  • Mar 23, 2011 4:41am Mar 23, 2011 4:41am
thompjw31,

Your are more on to something that works than just beginners luck. I will give this a go in demo mode, but it already looks good. Tks for shaing this price action method. Keep posting some of your charts.

____________________________
  • #9
  • Mar 23, 2011 4:46am Mar 23, 2011 4:46am
I think to monitor'e money market one of the best indicator is Real Estate market.
When RE market starting to grow - currency will be stranger.
  • #10
  • Mar 23, 2011 6:58am Mar 23, 2011 6:58am
I've been looking for the same price action pattern on other currencies (I now refer to the setups as apex gravity/ danir antigravity candlestick pairs). I hope you can see for the least part what I'm talking about. This one is on 5 minute, but did show up on 15 minute as well (at least the first pair did).
Attached Image (click to enlarge)
Click to Enlarge Name: danirantigravity2.jpg Size: 51 KB
  • #11
  • Mar 23, 2011 7:33am Mar 23, 2011 7:33am
I don't trade manual a lot, but for trending the market is use FX Pulse. It's free and useful.

Looks like this on the chart:

http://img192.imageshack.us/img192/1150/58004782.png
  • #12
  • Mar 23, 2011 7:49am Mar 23, 2011 7:49am
thompjw31,

Is it possible that you could post your EA?


Quoting thompjw31
I've been looking for the same price action pattern on other currencies (I now refer to the setups as apex gravity/ danir antigravity candlestick pairs). I hope you can see for the least part what I'm talking about. This one is on 5 minute, but did show up on 15 minute as well (at least the first pair did).
  • #13
  • Mar 23, 2011 7:51am Mar 23, 2011 7:51am
Quoting JohnFX_King
I don't trade manual a lot, but for trending the market is use FX Pulse. It's free and useful.

Looks like this on the chart:

http://img192.imageshack.us/img192/1150/58004782.png
This tool looks cool, but the question was how to code something like this.

That was the question: How do I determined that a market is trending. Visually, it is easy, coding it ???
  • #14
  • Mar 23, 2011 8:15am Mar 23, 2011 8:15am
Quoting Guerrillawar
The term best is not appropriate. 200 SMA does the job very well. But the trick is that is must be applied to many different time frames. Until Metatrader lets you put in custom time frames for example 34 minute or 162 minute it is not robust enough. Other paid for platforms allow more fine tuning. E signal or CQG.
I don't see a difference between using 200sma on multiple timeframes and using sma of different length on a single timeframe


Quoting arjfca
Now my 1 millions dollars questions:
How do I determined that a market is trending. Visually, it is easy, coding it ???
Visually determining if the market is trending is easy only at the end of the trend
  • #15
  • Mar 23, 2011 9:12am Mar 23, 2011 9:12am
I'll be more than happy to post the EA. I'll upload it as soon as I get home from work. Good luck, and hope everyone grabs pips today!
  • #16
  • Mar 23, 2011 9:54am Mar 23, 2011 9:54am
Quoting arjfca
...
I have developed and coded a counter-trading system. I'm looking to filter my entry. The idea is to prevent any counter-trend entry in heavy trending market.
...How do I determined that a market is trending. ...
There are several methods to determine a trending market. However all of them lag the market. Thus a paradox for your coding project. The lagging nature of the indicator is what indicates the trend...yet to counter trade you must determine independently WHEN to counter trade.

The better question to ask is, "When does a trend change direction?" This difficult at best because while trends follow a general pattern each trend also has its own unique pattern that does not fit the general trend pattern.

For my money, I use an oscillator and divergence to help find turning points. Stochastic set at 14,3,3 helps, as does a MACD set at 8,21,5. Observe that a trend is in place (via any of the trend indicators or price action), then watch for divergence that signals trend exhaustion or turn around.

You are now left with two options: #1) Try to trade counter trend in a strongly trending market. This is akin to stepping out in front a a train with your hand up and ordering it to stop...not the safest idea but it can be effective at times. Or #2) Let the trend pull back on a larger time frame and then watch a smaller time frame for the above mentioned divergence that signals, the pull back is about over. While you are on the lower time frame you trade will appear to be counter trend yet on the larger view it is rejoining the direction of the overall trend.

This can be coded rather simply by using the following:
Lower low in price && higher low in oscillator = bullish divergence
Higher high in price && lower high in oscillator = bearish divergence.

Good luck. These types of signals are difficult to code with any accuracy but are visually apparent when you look at the charts.
  • #17
  • Mar 23, 2011 10:03am Mar 23, 2011 10:03am
Quoting arjfca
Hello

Out of a visually aid, what is the best indicator or technique to determined that a market is trending.

I have developed and coded a counter-trading system. I'm looking to filter my entry. The idea is to prevent any counter-trend entry in heavy trending market.

Now my 1 millions dollars questions:
How do I determined that a market is trending. Visually, it is easy, coding it ???

Any help trully appreciated

Martin
The best method is using trendlines and understand market psychology. No other method is better than the eye ball.
  • #18
  • Mar 23, 2011 11:23am Mar 23, 2011 11:23am
Quoting arjfca
Hello

Out of a visually aid, what is the best indicator or technique to determined that a market is trending.

I have developed and coded a counter-trading system. I'm looking to filter my entry. The idea is to prevent any counter-trend entry in heavy trending market.

Now my 1 millions dollars questions:
How do I determined that a market is trending. Visually, it is easy, coding it ???

Any help trully appreciated

Martin
There is no 'best' setting/indicator/strategy in any market.
I use a simple Trendline, HH's/LL's, and an understanding of market participants' psychology. I do very well. Take that as you will. I do not know how you can code this.
  • #19
  • Mar 23, 2011 11:40am Mar 23, 2011 11:40am
I like Ragee Horner's 34EMA crossed with a 100SMA. For me the 34EMA follows price action better the a 20 of 50 cross.

I also use RSI14 and MACD for conformation.
Take all you can, give nothing back!
  • #20
  • Mar 23, 2011 12:58pm Mar 23, 2011 12:58pm
Quoting menkaur
I don't see a difference between using 200sma on multiple timeframes and using sma of different length on a single timeframe



Visually determining if the market is trending is easy only at the end of the trend
You could go about it that way. But you would surrender simplicity and continuity and have way to many lines on your charts. You would be surprised how different time frames (non traditional) respect key ma's. Bottom line Metatrader should allow for any time frame. They don't even allow for a H2 chart and that is definitely important. Metatrader is super overrated. Although its free so you can't really complain.
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