What is a good way to check for short term trends in 5 periods (1 week)

Discussion in 'Technical Analysis' started by rvsw, Nov 9, 2018 at 8:02 AM.

  1. rvsw


    Hello members

    What is a recommended way to check for short-term trends in approximately five days or 1 week?
    The usual indicators of ADX, Aroon et cetera required 14 day period. If I adjust them to use lesser time frame, then the reliability seems to reduce quite a bit. For example, ADX seems to be get over 45 pretty easily. When I went through the indicator recommended settings in more detail in the books available on this topic, it seems that the recommended settings are 14.

    So then I tried using 30 minute interval with a 14 period (approximately correspond to will one day as 14 multiplied by 30 is 420 minutes, which is 7 hours), but I'm still not able to get reliable results.

    I also tried looking at the slope of simple moving averages of various periods and timeframes. But the reliability is not good.

    What I'm hoping for is some kind of arrangement which will at least indicate the trend (and its strength) 70% of the time. This would be useful indicate that whether the market is in sideways point or trending and then I apply a different set of strategies depending on the market phase.

    Thanks for any inputs
  2. slugar


    No indicators try trendlines
  3. rvsw


    Thank You. I should have mentioned that I was hoping to use this in a programmable strategy. I am not aware of any simple way to determine trend lines in a Python program. In any case, the trend lines are subjective. But perhaps if there is a way to get a best fit (linear regression has not been useful), then it would be better. Another issue that I see with trendlines is that they willonly the close values. On the other hand, ADX and Aroon look at high and low values also which is adding more useful information.
  4. tommcginnis


    If you were to stare at your screen for a long while,
    and were to work up in your own mind the kinds of pricing/candle behavior into which you'd wish to gain further insight,
    and were to *calculate* those behaviors,
    and then *graph* them --
    you'd come up with something that looks terribly close to ADX or MACD.

    Study them as if they were your own invention. :thumbsup:
    Decide what each number, each "crossing", each peaking or bottoming turn means,
    AND THEN decide what your trading rules -- entry and exit -- would be.

    You are trying to work a 230mph oval set-up on a road course: it will not end well. :confused:
    rvsw likes this.