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Really miserable the FDAX, but the whole last 3 days - Distribution phase.
Not easy to quantify your bars because they are no classical outside bars wit HH + LL than the previous bar. They are more a kind of wide range bars and one would have to quantify them by a tick or period definition. But that gets to sophisticated for my limited skills, sorry for that.
You could additionally apply Fat Tailīs RangeAnalysis indicator to visualize such wide range bars. Have applied it in the second chart and set the wide range bars look back period to 100, to mach the bars that youīve marked.
Otherwise, just ask in the create an indicator thread if someone is willing to modifie the attached version TrendBars4podski, where the volume bars are removed.
I had a crack at it myself and it seems to work nicely. I have changed some of the default settings and included the "ignore inside bars" setting. The purpose of this is to keep me in a trend a little longer and not get knocked out by a couple of small downclose candles after a nice run up.
How do I intend to use it?
I try to trade the "progression" arms of a trend - just the upmoves and not sit thru too many pullbacks. This has the advantage of not giving back too many profits but the disadvantage of sometimes cutting your winners.
This indie will help me to stick with a trend a bit longer when I am trailing it.
I've tried to keep it very simple. When this indicator is right - it is very right but when it is wrong it's terrible. It is not meant to be any sort of long term trend indie.
1. In order to identify a "trend" you need two bars
2. Two consecutive bars that have higher highs and higher lows are "trending" up. (opposite for trending down obv)
3. So - let's say you have two bars that are trending and then there is an "inside bar" (the DAX takes a sneaky little break). I am often fooled into thinking "OK move is over - let's get out." Then the pig moves up 196 points.
The little break was not "significant" because it didn't break the trend. It didn't move below the low of the previous bar. Nothing happened. Just a little noise.
4. I use the "Period" setting then to say how many bars to look back to see this "significant" low. This is my reference bar.
In a trailing stop situation - the stop would be below this reference bar ..
