Trend Strength
Posted: Tue May 06, 2003 11:39 pm
Hi,
Been hard to find the time to visit in the last few days. Anyhow, a while ago I posted a rambling idea (look for the second post) on this thread:
viewtopic.php?t=168
Just now I was taking a quick mental break from work and thought up the following (definitions can be found in the above mentioned/linked post):
XYZ = (MA50-LLV)/(HHV-LLV)
Perhaps:
- expect an up trend to start weakening when XYZ forms a peak above 0.8
- expect a down trend to start weakening when XYZ forms a trough below 0.2
XYZ should swing between 1 and 0.
I might try something like: "if long and XYZ>0.85 then tighten trailing exit".
This XYZ thingy is probably not worth a pinch, but I hoped that it may spark just a general discussion on trend strength relative to perhaps:
- position size,
- open risk,
- acceptance/rejection of orders in other systems that you trade.
Been hard to find the time to visit in the last few days. Anyhow, a while ago I posted a rambling idea (look for the second post) on this thread:
viewtopic.php?t=168
Just now I was taking a quick mental break from work and thought up the following (definitions can be found in the above mentioned/linked post):
XYZ = (MA50-LLV)/(HHV-LLV)
Perhaps:
- expect an up trend to start weakening when XYZ forms a peak above 0.8
- expect a down trend to start weakening when XYZ forms a trough below 0.2
XYZ should swing between 1 and 0.
I might try something like: "if long and XYZ>0.85 then tighten trailing exit".
This XYZ thingy is probably not worth a pinch, but I hoped that it may spark just a general discussion on trend strength relative to perhaps:
- position size,
- open risk,
- acceptance/rejection of orders in other systems that you trade.