Definition of a trending day - Traders Hideout | futures io social day trading
futures io futures trading


Definition of a trending day
Updated: Views / Replies:9,987 / 69
Created: by Big Mike Attachments:16

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

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

Reply
 16  
 
Thread Tools Search this Thread
 

Definition of a trending day

  #31 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,651 since Mar 2010
Thanks: 4,226 given, 25,600 received
Forum Reputation: Legendary


monpere View Post
.

Why does so many include prior day data in the definition of a daily trend? What does the prior day's anything have to do with today's trend?

If there is a narrrow range day with an open near the low and the close near the high, I would not call that a trending day. Trending means that price moves ( volatility++) and that it moves into one direction only (further north in this case). So you need to include

-> the volatility++ criterion (requirement that the range of that day is above average)
-> the directional criterion (marubozu candle opening at one end and closing at the other end)

For the volatility threshold you can select an absolute value (for example a minimum of 10 points for ES) or a relative value (for example a larger range than the average range of the preceding N days).

Reply With Quote
 
  #32 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,697 since Oct 2009
Thanks: 3,041 given, 4,496 received

For a trend day you could just use the rotational factor as yardstick. Easy to process and gives good results.

Reply With Quote
 
  #33 (permalink)
Elite Member
Bala, PA, USA
 
Futures Experience: Intermediate
Platform: NinjaTrader
Broker/Data: Mirus, IB
Favorite Futures: SPY, Oil, Euro
 
monpere's Avatar
 
Posts: 1,858 since Jul 2010
Thanks: 300 given, 3,276 received



Fat Tails View Post
If there is a narrrow range day with an open near the low and the close near the high, I would not call that a trending day. Trending means that price moves ( volatility++) and that it moves into one direction only (further north in this case). So you need to include

-> the volatility++ criterion (requirement that the range of that day is above average)
-> the directional criterion (marubozu candle opening at one end and closing at the other end)

For the volatility threshold you can select an absolute value (for example a minimum of 10 points for ES) or a relative value (for example a larger range than the average range of the preceding N days).

I understand needing a minimum volatility for the current day, that depends on how many points on average your method needs to reach average targets. But, in terms of prior day requirements, if the ES had a range of 10 points each day for the last 3 days, and today it opened at the low and closed at the high and also traveled 10 points, would that not be a trend day because the range was not greater then the last 3 days?

I think a trend only has to do with how a market moves during the day, namely starting at one extreme, ending at the other extreme, and only having relatively shallow retraces during the the entire movement (HH/HL standard). The total amount of points traveled is only dependent on how many points your specific method requires the market to move in order to be profitable.


Last edited by monpere; March 22nd, 2012 at 06:32 PM.
Reply With Quote
 
  #34 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,821 received

Today's open > yesterday's open
Today's high > yesterday's high
Today's close > yesterday's close
Today's low > yesterday's low

I compare everything to the previous day, previous week, previous month. That's how I trade.
It's my benchmark. I don't use it to predict. Only to set traded prices and their values based on the volume profile.

Maybe you could take the lows off. There's always fake outs that break the previous days low that end up being strong trending days.


Last edited by Massive l; March 22nd, 2012 at 06:46 PM.
Reply With Quote
 
  #35 (permalink)
Elite Member
Quebec
 
Futures Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: Stage 5 trading/AMP/CQG
Favorite Futures: ES, NQ, YM
 
trendisyourfriend's Avatar
 
Posts: 3,697 since Oct 2009
Thanks: 3,041 given, 4,496 received

I think you are right. However, the volatility parameter may also add a qualifier to the type of trending day.


monpere View Post
I understand needing a minimum volatility for the current day, that depends on how many points on average your method needs to reach average targets. But, in terms of prior day requirements, if the ES had a range of 10 points each day for the last 3 days, and today it opened at the low and closed at the high and also traveled 10 points, would that not be a trend day because the range was not greater then the last 3 days?

I think a trend only has to do with how a market moves during the day, namely starting at one extreme, ending at the other extreme, and only having relatively shallow retraces during the the entire movement (HH/HL standard). The total amount of points traveled is only dependent on how many points your specific method requires the market to move in order to be profitable.


Reply With Quote
 
  #36 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,651 since Mar 2010
Thanks: 4,226 given, 25,600 received
Forum Reputation: Legendary


Massive l View Post
Today's open > yesterday's open
Today's high > yesterday's high
Today's close > yesterday's close
Today's low > yesterday's low.

@Massive l: This definition is not possible. Today's open does not need to be higher than yesterday's open. It is possible that yesterday was a down day, and that today is an uptrending day reversing that trend from yesterday. In that case today's open can be considerable lower than yesterday's open.

Now imagine the case that the market gapped down overnight and that a strong trending day followed closing just below yesterday's high. In that case you have a strong trending day which does not meet your conditions 2 and 4.

That means that conditions 1,2 and 4 cannot be defended at all. Condition 3 should be met but it is not ehough to define a trending day.

Reply With Quote
The following 2 users say Thank You to Fat Tails for this post:
 
  #37 (permalink)
Elite Member
Portland, OR
 
Futures Experience: None
Platform: tos
Favorite Futures: NQ, SB, 6J, CL, GC
 
Massive l's Avatar
 
Posts: 1,458 since Mar 2011
Thanks: 922 given, 1,821 received

You are correct. A gap down would nullify those conditions.
It works in some cases. Just getting something down as a start
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Last edited by Massive l; March 22nd, 2012 at 11:22 PM.
Reply With Quote
 
  #38 (permalink)
Elite Member
Colorado
 
Futures Experience: Advanced
Platform: MultiCharts
Broker/Data: IB & Iqfeed
Favorite Futures: ES , CL
 
sptrader's Avatar
 
Posts: 533 since Apr 2010
Thanks: 1,080 given, 668 received

This is a great discussion and one that I have a slightly different take on.
I've observed that during the best trending periods that "Volatility" is actually LOWER than during chop periods.. The " Directional Range" is Larger but the vertical volatility around the trendline is lower.. see attached photo- although not a great example, you can clearly see that during the trending period that the vertical range parallel to a LinReg line (volatility as I define it) is much smaller during trend periods than during the chop period...This is something that Mike COULD define in Excel as well..
Define a "minimum" directional price movement over time (slope) and low range about a Linear regression line (or MA) to define historic trend.
Just an idea...not sure if I expressed it well enough either..but it is easily observed.

Attached Thumbnails
Definition of a trending day-_trend-vs-chop.png  
Reply With Quote
The following user says Thank You to sptrader for this post:
 
  #39 (permalink)
Elite Member
Houston,Tx
 
Futures Experience: Advanced
Platform: NinjaTrader
Broker/Data: Mirus Futures/Zen-Fire
Favorite Futures: TF
 
ThatManFromTexas's Avatar
 
Posts: 2,302 since Feb 2010
Thanks: 1,208 given, 4,293 received

Trending goes both ways...

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
Reply With Quote
 
  #40 (permalink)
Elite Member
Germany
 
Futures Experience: Intermediate
Platform: Sierra Chart, MetaTrader
Broker/Data: OEC/Gain, Oanda
Favorite Futures: FGBL, FESX, ES, 6E, Forex
 
eboarder's Avatar
 
Posts: 166 since Dec 2009
Thanks: 540 given, 176 received



Big Mike View Post
For the purpose of statistics gathering, I am wondering if everyone agrees on the same definition for a trending day? And inversely, is a non-trending day automatically the same as a range bound day?

Proposed definition of long trending day:
A day in which the market opens, then moves higher throughout the day, without ever revisiting the opening price. The market eventually closes above the open.


Mike

Hi Mike,

have you found the formular for "defining a trending day"?

Reply With Quote

Reply



futures io > > > Definition of a trending day

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
How can you tell if it will be a trending or choppy day? Eiji Emini Index Futures Trading 39 May 1st, 2015 09:10 PM
Re:Trending Ribbon amruta NinjaTrader Programming 9 April 2nd, 2014 01:23 PM
Is there definition of the MedianRenko? maxima The Elite Circle 3 January 22nd, 2012 07:48 PM
Indicator to detect non-trending periods / consolidation? diverdan The Elite Circle 5 May 27th, 2010 06:29 PM
ES Trending preferences LordAlfa Traders Hideout 0 July 15th, 2009 01:40 AM


All times are GMT -4. The time now is 08:21 AM.

Copyright © 2017 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
Page generated 2017-12-12 in 0.17 seconds with 20 queries on phoenix via your IP 54.90.207.75