Invitation for wisdom- technical discussion series - 1

[beginner_av]

dear ratan, just like regression, MAs etc, too many wives in the neighborhood...so its the same question which one to pick and why? may be your suggestion will be the one where the ladder reaches fast and safe

 

[Linus]

what do you think is the best trend determination tool and why?

Trendline and a moving average. Reason: Slope determination.

ss

 

[ratan jain]

hey beginner_av!!!!

You remember my post!



yes... and seen mission impossible 2?
and dhoom 2
I am trying to get a hold of that ceiling cable retraction systems

do it in style

 

[beginner_av]

Trendline and a moving average. Reason: Slope determination.

ss

if you are going by slope, why not slope of regression line?

 

[beginner_av]

http://www.trade10.com/Linear_Regression.html

 

[beginner_av]

well this thread is not going anywhere - expected answers like KAMA, JMA, DCL etc and a discussion on them. Time to close it I guess.

 

[CreditViolet]

well this thread is not going anywhere - expected answers like KAMA, JMA, DCL etc and a discussion on them. Time to close it I guess.

Thats because trend determination is the holy grail.If one can determine if it is trending or not, nails every problem in trading.

 

[beginner_av]

i knew that, but this was a way to generate some discussion and tear some indicators into shreds. about holy grail, doesn't that apply to all forms of trading? but then, the exercise is to find out a better way. i am not a trend follower, neither will i put specific stuff i do over here. but then there are supposed to be trend following system that many claim to make money? so is it as good as random entry systems?

Regards

 

[CreditViolet]

i knew that, but this was a way to generate some discussion and tear some indicators into shreds. about holy grail, doesn't that apply to all forms of trading? but then, the exercise is to find out a better way. i am not a trend follower, neither will i put specific stuff i do over here. but then there are supposed to be trend following system that many claim to make money? so is it as good as random entry systems?

Regards

I think the problem with using indicators arises when people start to use it predictively instead of just using it as a measure. A high MACD value indicates that markets have been trending, it doesnt say anything that the trend will continue or not.And thats where distinction from classic trendfollowers need to be made, they get in at the start of the trend betting on the prospect of trend rather than an trend that is already in place.

 

[beginner_av]

That makes it clear. Do post stuff on FDI that I sent in your PM.