Is trend following limited to buying new highs and selling new lows?

Discussion in 'Trading' started by OPC, Jul 12, 2003.

  1. I wasn't aware that the Orginal Turtles disliked the turtletrader.com website. Seykota recommends the site.
    So the question is: where to go for better trend following information?
    BTW the www.orginalturtles.org link doesn't work.
     
    #11     Jul 12, 2003
  2. OPC

    OPC

    Oh, yes! Good point!
     
    #12     Jul 12, 2003
  3. OPC

    OPC

    #13     Jul 12, 2003
  4. Wow - Yeah it does work now. Thanks Brandonf and OPC.
     
    #14     Jul 12, 2003
  5. Like Brandon said, trend following could also include retracements. You establish that a strong trend is in place and buy or sell after the price has retraced in a certain way. A flag is an example of this. I like it when prices form an engulfing pattern right at the mid-line of the Bollinger Bands.

    As for breakouts, I would argue that this constitutes buying new highs and lows and isn't substancially different from what the original poster asked about.
     
    #15     Jul 12, 2003
  6. Moving averages are mathematical definitions of trend. Many traders use them in one way or another, to get out if not to get in.

    Three bar pivots are also popular trend following technique. Just look at the 3 min chart on the NQ, you will see a volume increase almost every time price breaks thru a pivot (a bar that sticks up above or below the two adjacent bars).
     
    #16     Jul 12, 2003
  7. While the stochastic measures what has happened to price, it tends to turn prior to the change in trend. In the sense of its interpretation, it is "proactive", as it is being used here. I prefer the term predictive to proactive.
     
    #17     Jul 12, 2003
  8. Check the trix indicator, I am not an expert do the google thing.

    Michael B.
     
    #18     Jul 12, 2003
  9. That's actually an empirical observation.... I wouldn't call it proactive or predictive...
     
    #19     Jul 12, 2003
  10. That again is an empirical observation.

    Empirical observation is great if it works for the individual. I have nothing against that. But as a statician developing systems, most of what people see isn't valid.

    Let's say I make a stochastic system or pivot system like what you say... most likely it won't be a profitable system. I'm sure both inandlong and peterfigliozzi have other information to help them weed out fake stoch or pivot patterns...
     
    #20     Jul 12, 2003