In order to properly define "strong trend", you must first define "trend strength." There are several indicators, including ADX, that claim to measure trend strength but they seem to vary significantly in the definition of trend strength. Good luck.
Thanks for the comment. ADX is one of the indicators that I have been examining. So far little luck. The default setting ( 14-period Wilder average or 27-period exponential moving average ) seems to be too long for my liking.
Feel free to ignore the defaults. In particular I think Wilder fixated on a period of 14 for reasons that have more to do with superstition than with rock-solid logic.
One of the fellow members on this message board used an 8-period Wilder Average ( 15-period EMA ). http://www.elitetrader.com/vb/showthread.php?s=&threadid=21376&perpage=6&pagenumber=1 I have been playing around with this setting. Have not tried Charles Schaap's setting yet.
First, I believe you have to identify what you trying to accomplish as far as using a target or some type of trailing stop to figure out what is a strong trend. If you are seeking bigger profits then it be impossible to be trading off one minute bars, but if you trading off dailies, then you can have a deeper retracement and still be considered to be in a strong trend. And duration of trade cause if you Scalper, 3 minutes is like forever but if longer term-two months can be a yawn.
have you noticed,that today(so far) IWM is EXACT opposite of yesterday(file attached). i mean-it's literally mirrored image of yesterday
================= Great points mr mm; not that it takes 10,000 hours to use a 200day moving average wisely. Frankly i still prefer paper charts, screens may help. especially if one prints paper charts off a screen ======================== 7 year; 10 year may help-10 year chart, its not really required to study 10 years.LOL 2 color volume may help;none of this is a prediction
Yes. It may sound silly, but it takes me a long time to develop a filter for bull/bear flag. Just tested it for a few days. Hence, it may turn out to be another piece of garbage.