Discussion in 'Trading' started by roumeo, Dec 16, 2002.
Try ADX on a 5 min bar to confirm a strong trend ...about 25 and above.
Take a look at the trend of the higher time frame, I use the Fibonacci Trader software which can plot mutiple time frames (and indicators) into 1 chart. So when you're looking at a 1 - 10 - 45 minute chart you see the 1 minute bars, (if you want you can also check an option for the other time frames to show) but you can plot indicators which are based on the 10 or 45 minutes. These indicators give me the trend.
Hope this helps.
all these fancy indicators.........
I look for the price to make higher lows above previous day's close and today's open i.e positive net price and positive opening signal.
You can throw in previous session's high as well to be even more confident you trade with the trend.
Intraday trends can be spotted on 10 &15 minute candle charts and larger time frames.
And the more convergances the better like 10 & 15 minute & weekly and so on .
Also recommend the books listed.[ elitetrader]
Back to breakout's tickcharts in an uptrend .Another convergance is IF that tickchart was a 10 minute candlechart ;note most prices CLOSE above what looks like a green or blue centerline [20 period]moving average.
Helps to learn all 49 or 50 ways to befriend the trend. If you can't understand all written on this post;use what you do.Trade with the trend of your equity ;small for most starters.
It would help if you post what market you are interested in. Assuming that you are interested in indexes, best IMO is to use these simple methods.
1/ 5 and 13 MA crossovers
2/ 10 period Bollinger Bands
3/ 13period stoch. ( any kind )
All of those on 5 min charts.
Moving averages , I use a EMA 50 on a 3 min to determine any longer term changes. Also, an EMA 5 and 15 on a 1 min while looking for crossovers to determine trends. If I see a lot of overlap and "braids" , then there is significant chop.
Some people use ADX and a Slow Stochastic.
Even oscillators can work, RSI or CCI regularly over the midline signifies an uptrend. A break below hints to a break of that trend momentum, with a quick reversal back into + midline shows resuming of uptrend.
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