What is your way of identifying trend reversals?

Discussion in 'Trading' started by ninZa.co, Sep 8, 2023.

  1. SunTrader

    SunTrader

    MES 144 tick chart with ROC (solid) ROCAvg (dotted) and histo below with the difference - yellow dots are 21 bar highs/lows:-

    ! ROC.png
     
    #91     Sep 14, 2023
    ironchef and Aisone like this.
  2. ironchef

    ironchef

    Thanks. I will chew on this.

    Most of my analysis were done over a decade ago when I first started day trading. Tried most of the published indicators, least square regressions, Kalman filtering, FFT, small signal analysis, perturbations.... I was clueless and the trading results showed: Not profitable.

    So, I moved on to trade options.

    Today, I am taking a very different approach on day trading, will restart after I conclude my paper trading tests.

    Best regards.
     
    #92     Sep 14, 2023
  3. Aisone

    Aisone

    Tick charts are a different animal because the verticle axis varies based on amount of trades instead of a constant amount of time. So because it's the oscillations of different time frames that I look at, I can't use them. The roc patterns on your chart look very normal and insightful though, and that's fascinating (and I've explored and seen this many years ago too), but ultimately it's harder to build on in the same way that can be done with using many different static time frames together.
     
    #93     Sep 14, 2023
    SunTrader likes this.
  4. SunTrader

    SunTrader

    That chart was handy but I use them on 1 and 5 minute timeframe mainly, as well as bigger picture 1 hour and above.

    Also with a combo of shorter and longer periodicity without much further insight - my experience anyway.
     
    Last edited: Sep 14, 2023
    #94     Sep 14, 2023
    Aisone likes this.
  5. Aisone

    Aisone

    Nice, good luck in that. Follow your instincts. I traded options many years ago as well (index options for a firm) but left the greeks buried in the past with no intentions of ever visiting them again.
     
    Last edited: Sep 14, 2023
    #95     Sep 14, 2023