On Longs, Shorts and Capturing the Trend

How do you know when a trend has started? Ended? This forum is for discussions about trend indicators and signals.
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Full Member
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Joined: Sat Aug 06, 2005 2:01 pm
Location: New York City

On Longs, Shorts and Capturing the Trend

Post by goldfish »

the problem i am trying to solve, or maybe just state for starters, is how to capture the end of an uptrend or the beginning of a downtrend. ever noticed how many charts look like A in the exhibit below (please excuse the art) and none like the B ?

a prolonged uptrend starts slowly and is captured well with something like MACD, a downtrend ends slowly often forming a smooth bottom. again MACD works well. perhaps the end of an up trend or the start of a down trend could be captured with a breakout indicator. Maybe this difference in behavior accounts for the bad performance of the shorts vs. longs - it is not easy to capture the beginning of a down trend.

does anyone have any thoughts about this?

trend.png (1.92 KiB) Viewed 4872 times
Roundtable Knight
Roundtable Knight
Posts: 176
Joined: Thu Apr 17, 2003 9:52 am
Location: Sacramento, CA

di+ di- will do the trick

Post by TradingCoach »

When DI+ crosses over DI- ie. green is on the top the trend is positive (no matter for how shortlived it maybe) reverse is true for downtrend. This also musy be confirmed with weekly charts.

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