Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TREND1 who wrote (24398)	11/18/2001 3:24:42 PM
From: TechTrader42	Read Replies (1) \| Respond to of 52237

There are indicators that help show whether the market is trending or ranging -- for example, volatility indicators such as standard deviation. Others use indicators such as ADX, CCI, Vidya bands. We've ventured into a huge subject really, and one of the key problems in TA, identifying trending vs. ranging -- or cycling -- markets. In a trending market, it may all seem a bit abstract, but it will be an important issue when the question of trend vs. ranging whipsaws arises again. Your own system has done a fantastic job of identifying the present trend, btw. No doubt about that. You and HAL -- and your third friend, the trend -- are quite a team. Nice work, all in all.

To: TREND1 who wrote (24398)	11/19/2001 10:36:34 AM
From: Robert Graham	Read Replies (1) \| Respond to of 52237

But how do you know in advance if the market is going to be trending or non trending ? How true! Just because it looks like it is setting up for the next leg does not mean it will follow through. And even if it does, the market can first whipsaw you out of your position before continuing. Sometimes by a visual inspection of the real-time charts, you can tell if the market is getting ready to trend from a trading range, or when it is turning into a trading range market from a trending market. But I have not run across any system that can do this. For example, once the price is changing into a trading range market, the risk to profit picture has significantly changed for the trend trader BEFORE the trading range has actually been established. Bob Graham