Before we can trade in direction of trend, we must identify it first

Discussion in 'Risk Management' started by ChkitOut, Jul 16, 2008.

  1. So start here?

    trend estimation is the application of statistical techniques to make and justify statements about trends in the data. Assuming the underlying process is a physical system that is incompletely understood, one may thereby construct a model, independent of anything known about the physics of the process, to explain the behavior of the measurement. In particular, one may wish to know if the measurements exhibit an increasing or decreasing trend, that can be statistically distinguished from random behavior.
  2. "Before we can trade in direction of trend, we must identify it first"

    I totally agree! :)
  3. Tums


    One point is static.

    Two points is a direction.

    Three points is a trend.
  4. Son, the trend you see is not a trend.

    My son told me he saw a lake on the road ahead of us when we were driving on a hot summer day, I told him: "Son, the lake you see is not a lake." :D
  5. You must identify the trend before fading it too.
  6. ronblack


    No, you don't have to identify a trend before you trade it.

    The idea is to trade and identify simultaneously. If you wait for positive identification, you will get there too late.

    Many experienced traders trade first and identify after. If you trade size you need to do that.

  7. Tums


    Bundlemaker posted a video on drawing channels, which can be used to identify trends.

    You can do a search on ET to locate the video.