Specific Indicators for Trend Measurement

There are a few threads about similar topics already. But I am trying to specifically make a list of ONLY those indicators that are easy to QUANTIFY and which do not need any SUBJECTIVE ANALYSIS.

I am NOT Looking for those indicators in which we have to Visually Track the chart in order to decide about the trend.

I am aware that there are no perfect answers for Trend Identification that works like magic, but still I think that a few indicators can help a bit.

If you are aware of any book or any link that gives info regarding Trending Indicators and their practical use then please share that info here.

Or if you like any particular indicator for this work then please guide.

Thanks a lot

 

Price

 

Hi,

ADX, Choppiness Index, Kaufman's Efficiency Ratio (which is very similar to the Chande Momentum Oscillator) are some of the common indicators that try to quantify the strength of a trend. However, none of them is perfect.

In addition, none of them is 100% objective, as the traders need to choose the setting (or parameter) for each indicator.

Good luck.

 

I sorta wonder what this sentence exactly means.

 

All TA indicators are subjective to one degree or another since you have to choose the parameters to use as input, lookback period for example. Anyhow, have look at John Ehlers work on the Instantaneous Trendline and the Decycler.

 

If you buy and you are in profit, the trend is up. If you buy and you are in loss, then the trend is down. There's no subjectivity to these.

 

Inexperienced Joe time to hit the books

 

Thank you so much moonmist. I will check out these indicators and will report back my understanding here.

And yes, I note your point that none of them could be 100 % objective because we ourselves have to decide about the parameters.

With Regards

 

Hi BSAM

I was just trying to say that these indicators should be easy to put in the form of a mathematical calculation etc. which could be used for Automatic Scanning. That way the scanner would automatically tell if those xyz conditions are being fulfilled by a particular stock or futures contract etc. The manual / physical observation of the chart will not be required in that case.

I hope that clears it up.

Thanks and regards