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I've tried quite a few "indicators" - and I've never found anything better than
drawing trend lines. I use simple trend lines - regression channels - and
channel break lines. If you've never worked with trend lines before - many TA
books will tell you how to draw them (I happen to like Trader Vic's Methods of
a Wall Street Master). When the trend lines don't seem to go up or down - then
you're dealing with a security in a trading range - and I draw horizontal lines
on my charts to show the top and bottom of the range. Since my systems are
trend following - I try to avoid doing anything when the security in question
is bouncing around in a trading range. People who use other kinds of systems
can probably use these trading ranges to their advantage. Robyn
Lindsay Blanks wrote:
> In trying to design a system one of the major problems that presents itself
> is how to determine the charcter of the market you are trying to trade.
> Obviously trending markets lend themselves to trend following systems and
> trading markets require other systems. What is the best way to measure the
> markets "trendiness"?
> I have considered the ADX but that has problems with lag. What methods are
> used by others?
>
> Thanks
>
> Lindsay
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