New posts

Reply to thread

Message

I use the classic definition of a trend, i.e. higher peaks and higher troughs for an uptrend, lower peaks and lower troughs for a downtrend.
I like moving averages to confirm the trend.
I agree with anyone who says moving averages are unnecessary. But unnecessary doesn't mean they're not useful.
As for which moving averages to use, I've borrowed some ideas from Dave Landry and Alex Elder.

Elder says that whatever timeframe you trade from, you should first identify the trend in a timeframe that's four to five times higher, then you go back to the shorter timeframe and trade in the direction of the trend of the longer timeframe.
A trader from daily charts would first identify the weekly trend, which is five times longer than a day. Then he'd trade the daily chart in the direction of the weekly trend.
A trader working from 15 minute charts would first identify the trend on an hourly chart, which is four times as long as 15 minutes. Then he'd trade the 15 minute chart in the direction of the hourly trend.

<blockquote data-quote="bunyip" data-source="post: 445518" data-attributes="member: 3081">I use the classic definition of a trend, i.e. higher peaks and higher troughs for an uptrend, lower peaks and lower troughs for a downtrend.I like moving averages to confirm the trend. I agree with anyone who says moving averages are unnecessary. But unnecessary doesn&#039;t mean they&#039;re not useful.As for which moving averages to use, I&#039;ve borrowed some ideas from Dave Landry and Alex Elder.Elder says that whatever timeframe you trade from, you should first identify the trend in a timeframe that&#039;s four to five times higher, then you go back to the shorter timeframe and trade in the direction of the trend of the longer timeframe.A trader from daily charts would first identify the weekly trend, which is five times longer than a day. Then he&#039;d trade the daily chart in the direction of the weekly trend.A trader working from&nbsp; 15 minute charts would first identify the trend on an hourly chart, which is four times as long as 15 minutes. Then he&#039;d trade the 15 minute chart in the direction of the hourly trend.</blockquote>

[QUOTE="bunyip, post: 445518, member: 3081"] I use the classic definition of a trend, i.e. higher peaks and higher troughs for an uptrend, lower peaks and lower troughs for a downtrend. I like moving averages to confirm the trend. I agree with anyone who says moving averages are unnecessary. But unnecessary doesn't mean they're not useful. As for which moving averages to use, I've borrowed some ideas from Dave Landry and Alex Elder. Elder says that whatever timeframe you trade from, you should first identify the trend in a timeframe that's four to five times higher, then you go back to the shorter timeframe and trade in the direction of the trend of the longer timeframe. A trader from daily charts would first identify the weekly trend, which is five times longer than a day. Then he'd trade the daily chart in the direction of the weekly trend. A trader working from 15 minute charts would first identify the trend on an hourly chart, which is four times as long as 15 minutes. Then he'd trade the 15 minute chart in the direction of the hourly trend. [/QUOTE]

Verification