I suppose I confuse tradable with physics. For me, a stronger slope translates into a better trading environment but I trade momentum impulses and that best works with steep slopes.
VAGUE Would you buy whatever this is based on this chart alone? Of course not. It could be topping in advance of a bear reversal.
Yea that's why you have stop losses and trade with the trend and also have a system. Not sure what you're implying.
That's why I like the DSP model of market behavior, because it is rooted in solid mathematic and engineering principles. Strength can be defined precisely as particular frequencies present in the price data. The detractors will claim that anything from the world of physics that is applied to financial systems is a misapplication of the science. I guess that is a philosophical debate to be had.
Hi Metatrader54, Just curious if you define the intraday trend strength based on the number of new highs vs. the number of new lows? If so, do you base it on some kind of a statstical study? Thanks, varaamo
No statistical study or programming used. Manual backtesting, tons of instrumentd and years. Another thing I find useful to determine strength is the angle of impulse waves.