Need help/input on simple trend calc - futures io

Discussion in Platforms and Indicators

Updated by Fat Tails
1. trending_up 1,514 views
2. thumb_up 0 thanks given
3. group 2 followers
1. forum 2 replies
2. attach_file 0 attachments

 Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
 Genuine reviews from real traders, not fake reviews from stealth vendors Quality education from leading professional traders We are a friendly, helpful, and positive community We do not tolerate rude behavior, trolling, or vendors advertising in posts We are here to help, just let us know what you need You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple. -- Big Mike, Site Administrator (If you already have an account, login at the top of the page)

Need help/input on simple trend calc

 (login for full post details) #1 (permalink) Fortitudo et Honor Austin, TX   Experience: Advanced Platform: TradeStation Trading: Futures   Posts: 882 since Mar 2011 Thanks: 124 given, 698 received I'd like to develop a "simple" trendline calculation which yields a binary output (upward trend or downward trend). Strength or slope would be nice, but isn't paramount. I'm more concerned about making sure that I get the localized trend correct. The calculation would only need to be for the previous few bars (say 2-5). I've thought about averaging the highs/lows along with the opens/closes and interpolating between bars.... i.e. bar[1]: Open of 100.00, Close of 200.00, High of 250.00 and low of 50.00. The "center mass" of that bar would be (((H+L)/2)+((O+C)/2))/2 or 150.00 Obviously if the "center" mass of the previous bar was lower, it would be an upward trend. The other possibilities are even simpler, by getting a delta from the 2 bars, highs, lows, opens, closes for a 4 number vote (weighted). any help, recommendations or input would be greatly appreciated. Especially if I don't have to reinvent the wheel.

Can you help answer these questions
from other members on futures io?

 Best Threads (Most Thanked)in the last 7 days on futures io

Market Wizard
Berlin, Europe

Broker: Interactive Brokers

Posts: 9,841 since Mar 2010

RM99
 I'd like to develop a "simple" trendline calculation which yields a binary output (upward trend or downward trend). Strength or slope would be nice, but isn't paramount. I'm more concerned about making sure that I get the localized trend correct. The calculation would only need to be for the previous few bars (say 2-5). I've thought about averaging the highs/lows along with the opens/closes and interpolating between bars.... i.e. bar[1]: Open of 100.00, Close of 200.00, High of 250.00 and low of 50.00. The "center mass" of that bar would be (((H+L)/2)+((O+C)/2))/2 or 150.00 Obviously if the "center" mass of the previous bar was lower, it would be an upward trend. The other possibilities are even simpler, by getting a delta from the 2 bars, highs, lows, opens, closes for a 4 number vote (weighted). any help, recommendations or input would be greatly appreciated. Especially if I don't have to reinvent the wheel.

I do not think that a trend can be determined from the last 5 bars, but 30 or 50 bars would be more appropriate. But if you insist on taking 5 bars only you have numerous options.

-> Use a 5-period Fast Stochastic or 5 period RSI and check whether they are above or below 50, you can even define a neutral range.
-> Check whether the close is above or below the 5-period Median or 5-period SMA.
-> Determine the slope of a 5-period Linear Regression Indicator
-> Calculate the 5-period Directional Movement

and so on. There are no limitations how to define the trend. Again I use a much longer term period to define a trend and then try to identify retracements within that longer period, which are tradeable.

 futures io > Need help/input on simple trend calc

June 16, 2011

 Upcoming Webinars and Events Become an Elite Member

 Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io All information is for educational use only and is not investment advice.There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts