Trend as defined by Dow theory An upward trend in Dow Theory is a series of successively higher peaks and troughs. A downward trend is a series of successively lower peaks and troughs. Dow Theory Explained: What It Is and How It Works (investopedia.com) A good source for stock trend https://school.stockcharts.com/doku.php?id=market_analysis:dow_theory Using CBOE as an example, volatility often cloud trend. Don't over look timeframe.
LOL, RSI and MACD, I remember those, used to use them, you can go directly into poor house as divergences in strong trending market can show a dozens of divergences over years. And shorter the parameter, many false signals. Big traders and Pro's normally exit stair stepping up/down, you can see in reduction of volume as price going extreme, this better than indicators. Imho Using 20sma flattens out, can expect change in direct, don't know if it produces retracement to add on or major reversal. Learn to hedge for long term trades, covers your loses and learn how long to keep them, don't get married to them. All my entries are pattern recognition, where there is a difference are patterns not in books.
MarkB, Handle's mention of RSI reminds me, did that wrsi divergence thing ever get backtested? Not a coder meself, but from the description it looked like it would not be slam dunk easy to code up.
it's still on my desktop to do list, out of my own curiosity i will get around to it sooner than latter..
Did MarkBrown just steal my 8 & 20 Pullback idea @easymon1 ? But using 8 EMA and 20 SMA should produce better results shouldn't they?