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The very first thing YOU have to do for
us to understand anything you are saying is to define what you mean by “Trending”
and “Ranging”. These words like everything else in trading
mean different things to each member of the audience. That’s where
the trouble begins ..
Defining these terms is the first
step in any automated system, IMHO.
d
<span
>-----Original Message-----
From: gosub283
[mailto:gosub283@xxxxxxxxx]
Sent: Wednesday, March 26, 2003
12:08 PM
To: amibroker@xxxxxxxxxxxxxxx
Subject: [amibroker] TRENDING vs.
RANGING markets
<span
>
<span
>Hi everyone,<font size=2
face="Courier New">
I think this issue will become more important
over the next year or two.....
When a human looks at a chart, he/she can
immediately determine if a market is in
a TRENDING mode or a RANGING mode.
It is a most amazing feat of human visual
data analysis that takes place in a matter
of seconds. Trying to get computers to
"visually"
analize anything takes major computing power.
Unfotunately computers and trading system have
a much more difficult time of determining these
market modes than us humans.
Things become very "fuzzy" when trying
to
put the question of "Ranging vs.
Trending" into
mathamatical algorithms. And...of course.. the
trading timeframe (long term vs. short term),
make things even fuzzier. (is
"fuzzier" a word ??)
For those of us who program automated systems,
this is especialy important because it means
that we can design systems that adjust
effortlessly
between ranging and trending markets. If correctly
identified, a system can use a particular set
of indicators for Ranging markets and then switch
to other indicators when a trend is determined.
Allowing for a truly autonomous system.
Has anyone found a way to mathamatically
(reliably!)
determine if a market is Trending or Ranging ???
(An AFL algorithm perhaps)
In other words, an indicator which can give
direction
as to which set of indicators to use.
(A hypothetical example of such an indicator would
have a response from 0=ranging to 10=Trending )
Cheers,
Gosub283
<font size=2
face="Courier New">Send BUG REPORTS to
bugs@xxxxxxxxxxxxx<span
>
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
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