Mathematically computing a trendline

Discussion in 'Technical Analysis' started by SeventhCereal, Jul 23, 2011.

  1. Yup

    Step #1 -
    Objectively define "Trend" as it applies to your specific charting environment.
     
    #11     Jul 25, 2011
  2. rosy2

    rosy2

    i do this by taking the slope of the current point and the point from N seconds ago. I use the esper library which has a slope function
    :eek:
     
    #12     Jul 25, 2011
  3. Perfect but how do you overcome the inconsistency of unbalanced chart bars. (If using time or tick charts.)
     
    #13     Jul 25, 2011
  4. rosy2

    rosy2

    i am not a professor. whats an "unbalanced chart bar" :confused:
     
    #14     Jul 25, 2011
  5. #15     Jul 25, 2011
  6. This is only a hard task if there isn't a precise definition of what constitutes a trend. With such a definition, it's easy peasie.
     
    #16     Jul 25, 2011
  7. Yup
     
    #17     Jul 25, 2011
  8. Time Bar Chart - A Bar chart where each bar carries a unique volume weight because each specific market/symbol completes a random number of transactions per minute and there are a random number of shares or contracts traded per transaction.
    Unbalanced Bar Chart

    Tick Bar Chart - A Bar chart where each bar is made up of a fixed number of transactions per bar and still carries a unique volume weight because each specific market/symbol completes a random number of contracts per transaction. (GLOBEX's decision in 2007 to arbitrarily group transactions virtually destroyed the ability to balance this chart type)
    Unbalanced Bar Chart

    Volume Bar Chart - A Bar chart where each bar is made up of a nearly fixed number of shares or contracts traded per bar but still carries a unique volume weight because unless the volume is capped on each bar there is the potential for contracts or shares can roll over to the next bar based on larger transactions being applied to the chart.
    Unbalanced Bar Chart

    Constant or Capped Volume Bar Chart - A Bar chart where each bar is made up of a fixed unvarying number of shares or contracts traded per bar.
    Balanced Bar Chart
     
    #18     Jul 25, 2011
  9. Two 8EMAs slope envelope.One of the high, other of the low.There you got a trendline and a tape - two in one.
     
    #19     Jul 25, 2011
  10. The OP stated they wanted to basically compute a trendline of the form (y - y0) = m (x-x0). They stated wanted to use this to determine box ranges and triangles.

    Two 8 EMA's slope envelope alone will not allow the OP to compute their goal.
     
    #20     Jul 25, 2011