Trend oscilator

Discussion in 'Automated Trading' started by simon1080, Jul 20, 2008.

  1. Can anyone recommand a good trend oscilator?

    As part of my automated strategy.. I need to come out with a condition for determining the uptrend or downtrend.

    Anyone recommand a method for accomplishing this?

    So the system only goes long with the trend is upwards!
  2. some easy things include slope of a ema (i like the 34ema). Beware of fast oscillators macd stochastics etc, they will tell you you are in a downtrend while youre really in a retracement.
  3. dom993


    To detect strong trends, I would use 2 distinct EMAs (say 20 & 50 for example), and check both are going up (or down), the shorter one above the longer one for uptrend (reverse for downtrend) AND the 2 are somewhat parallel (distance between the 2 at last bar ~ same as 5, 10, 15 & 20 bars ago).

    You can remove the last criteria for less strong trends.