Trend Detection Indicator

[Boggo]

Hi, Could you post the pre March 2009 chart. March 2008 to March 2009. Thanks.

No problem, have also included the XJO for the same period to maintain an overall view of where the market is at to eliminate any "an indicator is better than the market" false enthusiasm events.

(click to expand)

 

[Wysiwyg]

It appears to be a sign of learning. Most seem to go through different stages of needing 'indicators' or some other such. People seem to need the crutch until they are either out of the market by blowing up, or a survivor.

brty

I doubt anyone can walk before crawling. Some of you may have been there and done that so all constructive comment is welcome.

No problem, have also included the XJO for the same period to maintain an overall view of where the market is at to eliminate any "an indicator is better than the market" false enthusiasm events.

Thanks. Similar as I get. Yes to me indicators are zones of interest. There is nothing definite in any one indicator. The primary trend for ones chosen time frame could be of interest.

 

[pennies]

Whats with this fanatical devotion to Stochastic?
Total in difference to other suggestions?

Not sure what you are referring to here. If it is because of the sell arrows I have on the chart indicating that Im still using the stochastic as a sell signal then thats not what Im doing. They were placed on there initially before I realised that they werent really a suitable sell trigger. I had not taken them back off because I had not come up with a way of coding what you mentioned before. (Lower high and lower lows) As for an entry signal I think the stochastic works really well. Up until now I have always used a trailing stop or placed the stop below a recent low.

 

[Boggo]

Thanks. Similar as I get. Yes to me indicators are zones of interest. There is nothing definite in any one indicator. The primary trend for ones chosen time frame could be of interest.

Precisely, and following on from zones of interest you then look for bars/patterns of interest in the new direction.

Its simple in theory

 

[tech/a]

I doubt anyone can walk before crawling. Some of you may have been there and done that so all constructive comment is welcome

Thats what they are getting however they havent taken the time to learn what it is they have evidently become convinced of as being the indicator of indicators.

It appears to be a sign of learning. Most seem to go through different stages of needing 'indicators' or some other such.

Yes so true I was in the same boat once.
Still losing $20k in a few months got my attention!

 

[brty]

Wysiwyg,

I doubt anyone can walk before crawling.

That was my point to Tech/a, that what some of us know about these things, others with the L plates need to go through it. It is a step along the learning curve. I think we should encourage/guide those still there to lose as little as possible at this point.

Stochastics often give good signals at turns, but they also give many other good signals, that don't turn. Eventually as you proceed with them, you notice other signals that separate the good from the bad. These then get added to the arsenal. Further along the line this is further refined until there is a plethora of signals lining up on both trades for the year, that has one of it's few failures.

Tech/a,

Yes so true I was in the same boat once.
Still losing $20k in a few months got my attention!

I lost $20k in about 20 minutes in the early '90's, taught me a few things very quickly, like trusting signals maybe even a little about overtrading....

brty

 

[pennies]

"Stochastics often give good signals at turns, but they also give many other good signals, that don't turn. Eventually as you proceed with them, you notice other signals that separate the good from the bad. These then get added to the arsenal. Further along the line this is further refined until there is a plethora of signals lining up on both trades for the year, that has one of it's few failures."


OK I see what you are saying. So do you use any indicators at all? Im not asking what you use just curious if you do actually rely on any indicators. Or do you rely on price patterns, candles, fibs, repeating ranges and support and resistance?

Just curious. Theres no sense in myself wasting more time on this if its not going to improve on where Im already at.

 

[tech/a]

You have asked for a Trend Detection Indicator I thought and Stochastic in the veiw of those who have replied isnt it.

Indicators have their place but for live discretionary trading I dont use any.
In Systems yes but thats a different type of trading again.

 

[brty]

pennies,

So do you use any indicators at all? Im not asking what you use just curious if you do actually rely on any indicators.

I don't use indicators at all. I tend to know what most indicators are doing from the price action, most are much of a muchness. I will buy during an uptrend, defined by higher highs and higher lows. I will only buy at the bottom of a retracement to support, not any support but what I deem to be 'good support'. How a stock approaches this support is important, it must 'meander' to it.

My point about...

others with the L plates need to go through it. It is a step along the learning curve.

... was real. Perhaps it IS IMPORTANT to make mistakes as part of the learning curve, these type of mistakes. The trick is to lose as little as possible whilst learning, bet small, no matter how good a signal works, or seems to work.

If you don't actually make the mistakes, then you may never really believe they are mistakes, and therefore things tend to play on your mind when implementing a position, or staying with a position.

In trading over the years, I have made every mistake known to man, and probably invented a few new ones. The one thing I didn't do was bet the farm to regain losses, hence I was able to stay in the game, or come back to it.

brty