MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Technical Trading

[3vilDawg]

Hi Everyone,

I'd like to know which indicators can detect a trend, as in bull, bear or ranging. I have read a lot about technical indicators and I understand that the best indicators are to be used in certain "trending" or "ranging" markets. But for that I have to first detect the direction of the market(bull/bear/ranging).

So far I have tested DMI, RSI but I need more validation. Any suggestions would be of gr8 help.

Thanks in advance
3vilDawg

[kj]

I also am interested in this topic. The best I have come across is the ADX - I prefer 20-day. I find the best indication of a rangebound market is when this indicator (ADX(20)) is very low, ie, below 20, and falling. The big problem with this indicator is that your best trading signals will come when the ADX is still giving a "rangebound" signal, usually when it breaks out of the range. Other ways to detect trend are Slope, and volatility (volatility, or the daily range, tends to increase with a trend). Interested in hearing what others have found useful.

[0_PARADOX_0]

Your eyes are the best. But what time frame you have to ask yourself as well. I personaly dont use the ADX. But if your new to this start with the basics like trendlines and MA.

ANyways have fun.

[3vilDawg]

Hi guys,

Thanks for the advice, I am currently working on ADX, DI+, DI-, Linear Regression Slopes and channel width for the same indicators. So far they work quite good, although i have to modify the time frame for individual stocks. I want to actually confirm the trend using 2-3 different indicators and then apply appropriate indicators for that trend!

[pegasys]

I use two MA's and std deviation to great effect. I also like to use Parabolic SAR and look of MACD for divergence. Std deviation keeps you out of a choppy market so u won't thake the MA's false signals.

[0_PARADOX_0]

Still for someone thats new they should first learn trendlines an MA and go from there.

[narafa]

Originally Posted by 3vilDawg

Hi guys,

Thanks for the advice, I am currently working on ADX, DI+, DI-, Linear Regression Slopes and channel width for the same indicators. So far they work quite good, although i have to modify the time frame for individual stocks. I want to actually confirm the trend using 2-3 different indicators and then apply appropriate indicators for that trend!

If you choose to confirm the trend using 2-3 different indicators, and then apply appropriate indicators for the trend, you will end up buying at the top (Near the end of the trend) or shorting at the bottom (Near the end of the trend as well). You will miss the whole trend and possibly ride a losing position, or at least a breakeven one if you are lucky enough.

You have to take into consideration that ALL indicators are computed used the historical prices, this means that they actually act after the fact, so they ALL lag, no matter what. To catch a trend, you will need to spot the price action and analyze it to catch the periods in which the probability of having a trend starting is high, regardless if it is up or down. To go long or short, that's another thing you will have to assess from the price action as well or using any simple other indicator.

Thanks,

Nader

[firedave]

Originally Posted by narafa

If you choose to confirm the trend using 2-3 different indicators, and then apply appropriate indicators for the trend, you will end up buying at the top (Near the end of the trend) or shorting at the bottom (Near the end of the trend as well). You will miss the whole trend and possibly ride a losing position, or at least a breakeven one if you are lucky enough.

You have to take into consideration that ALL indicators are computed used the historical prices, this means that they actually act after the fact, so they ALL lag, no matter what. To catch a trend, you will need to spot the price action and analyze it to catch the periods in which the probability of having a trend starting is high, regardless if it is up or down. To go long or short, that's another thing you will have to assess from the price action as well or using any simple other indicator.

Thanks,

Nader

Agree with you Nader Another good post

[narafa]

Originally Posted by firedave

Agree with you Nader Another good post

Thanks my friend

Nader

[STEFJANY]

Hello everyone,

What is the best combination of technical indicators that have a great potential for the upside ? What exactly are you doing to detect timely buys from price action (detect a big trend on time?) PLUS WHAT ARE THE BEST SCREENS FOR THAT ???
MACD, Stochastics, OBV?

Best Regards,

Stefan Badara

[LelioBR]

Use trendlines.

[birdjaguar]

John Ehlers claims to have a zero lag indicator using Digital Signal Processing trechniques in his book Rocket Science for traders. The following is his website.
http://www.mesasoftware.com/

[PapaiNoel]

I would like to know from those who have been trading forex for more than two years which indicators they are using mostly today. Since I only play the forex I am only interested in that market! If you can help me, thanks Papainoel

[zynetic]

For short term trend. I normally use Money flow Index, Slow Stochastic and MACD.

[astro]

Just keep in mind that whatever system you use to detect trends, you will probably run into series of losses before winning a big one, mainly during range bounding markets, as this is a common characteristic of all trend-following-systems.
This doesn't mean that you won't eventualy be profitable, but that you will have to stick to the system even after experiencing a number of consecutive losses, until you catch the "fat fish".

Astro.