Discussion in 'Index Futures' started by shortorlong, Mar 2, 2008.
What is a good indicator to show that price is in a channel, say, on a 1 minute chart?
You can draw arbitrary trend-channel lines on the chart
What charting platform are you using?
I'm using ninjatrader.
I'm looking to get some indicators to help confirm channels for the ES.
manually drawn trendlines are your friend
Indicators are CRAP. That is, unless you spend countless hours figuring out relationships btw price action and the indicator in question. No indicator will provide you with any sort of consistency without tons of extensive study.
I suppose. For the purpose of this discussion though, suppose you wanted to automate your strategy.. Then you would want an indicator for your software to use.
In other words - You are a channel-trader right now and you want to spend more time at the beach so you are going to write a program to replicate your strategy.
What indicators would you want your robot/program to use in order to
a) identify is price is currently in a channel or a trend
b) identify when price is near the top/bottom of a channel
The first question is, are you already a successful discretionary trader? That is, are you already pulling money out consistenty and just want to see how to do it via a program/bot?
No, I'm just starting out. I am a discretionary trader for about 2 days. I'm not writing a bot or anything, I just put that up to try and drive the discussion towards what I'm after: indicators around channels.
I see all kinds of indicators around price breakouts, end of trend, etc. I like channels atm, but I don't see any obvious indicators that I can use for entry, confirmation, etc.
Thanks for the continued discussion.
First, you need a clear and precise defintion of a channel and how its formed, how it ends and how channels in the opposite direction overlap. Once you establish this with great certaintly, you could probably code up your own indicator.
What time frame are we talking?
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