Markets are high dimensional systems - that is, expressed by many variables - but still contain a great deal of structure. I believe that trends can help reducing the dimensionality of markets to make decisions. Ultimately, traders should look for models for which the equity line lies on a well identified tracjectory in their searching landscape. To make a story short trends can certainly be used with great result but with a non "Technical Analysis" flavor.
There is no such thing as holy grail but stuff that eventually works better than average. Here is an example of what I do with trends: For each parameter of my system: - I do a trend segmentation - I build a matrix for which each row is made of a trend - I build the autocorrelation matrix - I do a Principal Component Analysis on this matrix This model looks at the temporal unfolding of a series of contiguous trends. I use this information to generate entries instead of projecting a trend which I agree is stupid.
I couldn't trade without trendlines.... it all depends where you draw them...most people like to connect tops/bottoms, which doesn't work in my book
Could anyone advice a good trade alert service on trend lines signals? I need to recieve notifications via e-mail each time the system recognize a trend and trading signal. Thanks!
Check out www.amibroker.com. You can program it to send you Alerts whenever preset conditions are met.
Daytraders should just flip a coin. Heads, go long, tails, short it. If the position moves against you, close it. If the position is profitable, hold on tight. All I can say is thank god for derivatives. I don't know how you daytraders put up with all the drama.
Of course trendlines work, until they don't otherwise ipso facto they wouldn't exist. I think the question is, where and how do they expire?
Theres a reference to purchasing services in list of disclaimers for the download. What services are they talking about? The trend line touch popups?