Define "Trend day"

Discussion in 'Trading' started by jonbig04, Aug 19, 2008.

  1. I could google it, but I want to know what other people think it means.

    Technically if the price closes any different than it opens, it could be considered a "trend" day.

    Or maybe the trend is clear all day long, i.e. the market is moving in a tight range with an upward or downward bias all day.

    What does it mean to you?
  2. A trend day to me is what i consider momentum. You look at the stock and it has been in a consistent uptrend or downtrend all day. Other people might consider a trend day where there are consistent reliable swing trends both up and down all day long instead of the stock going flat. Lastly a trend day could be a day that follows the overall weekly swing trend or overall monthly up or down trend. It's really all about the timeframe you work in. There are no absolutes in the market. It is what you consider it to be because i am sure a lot of people don't think momentum is what i think it is. This is the beauty of the market. The day you let people painting your painting is the day you fail as an artist.
  3. trend day...when market trend......all day:D
  4. 1) The market opens near one of its daily extremes, low or high, and persistently "trends" toward and closes near its other extreme, high or low.
    2) Retracements against the trend tend to be "small".
    3) The magnitude of the daily range for that type of day should be much "larger than average".
    4) The next day should have some "follow through" in the direction of that day's trend.
  5. I consider the market to be trending on a particular day..when the market follows a particular overall direction and it does not have difficulty breaking the supports or resistances (whichever applicable) in following that direction.
  6. Great explanations.

    Like it was said, its all very subjective based on time frames, but I just wanted to get an idea of what most people consider I nice trend day. Thanks
  7. It's only subjective when comparing one trader definition to another trader's definition.

    However, if you don't compare and only look at a specific trader's definition or rules that helps him/her to identify a trend day as it is occurring or in hindsight...

    It's not subjective.

    Simply, if you can define your trend day based upon particular price action conditions that must occur to be called a trend day regardless if these conditions are simple or comples...

    It's not subjective and that particular trader can keep stats of his/her performance within what ever is defined as a trend day.

    For me, without going into my specific details about my price action conditions for a trend day...

    My general view is that I want to see higher highs with higher lows in which the higher lows do not retrace the prior higher low for an Up Trend Day (flip it for your Down Trend Day).

  8. fielman


    For me it is when ABS(Close - Open) / (High - Low) > 0.65

    Lot's of formulas to use to classify a day as a "Trend day" i.e. you can use number of 15m up / down ticks divided by total number of ticks

    Whatever suits you
  9. Arnie


    This is a good definition, although I'm not sure about #4, given recent history. One thing to remember about trend days is they usually come out of nowhere and slowly build thoughout the day as more and more traders have to cover from fading the move.
  10. Brandonf

    Brandonf ET Sponsor

    I have an old lesson which might still be on Toni's website about trend days and how to trade them. Its always gotten very high reviews. If you can't find that one I think that Linda Rashke also has a lesson on her site on the same subject which is also very good.

    #10     Aug 20, 2008