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Just a thought on this topic:
There is no possibility to deliver an answer that all will accept
and that is stringent enough.
Why do I think so? Well, my thought is that if someone can define uptrends
and downtrends in an easy to interpret way, that works without amigouities,
then we must at the same time have received a working perfect trading
strategy (buy when the trend switches to up, sell when the trend switches to
down, uptrends have been dominant so such a system would have been
profitable).
Since this is the holy grail we are all searching for, no perfect well
defined answer exists. (And those that are closest to the answer is most
likely to stay quiet on the subject).
> -----Original Message-----
> From: Lawrence Chan [mailto:stnahc@xxxxxxxxx]
> Sent: den 23 februari 2000 17:41
> To: Omega List
> Subject: Re: Trend Up ?? down?? simple Question
>
>
>
> interesting thread ...
>
> depending on a specific time frame, the classical way is to find
>
> 1. higher low and higher high for up trend
> 2. lower high and lower low for down trend
>
> someone mentioned this already, but what is a higher/lower high/low?!
> how to classify the swing high/low point?
> and most important of all, is the above requirement is needed
> completely?
>
> some people has relaxed the rules a bit,
>
> 1. higher low for up trend
> 2. lower high for down trend
>
> obviously depending on the need of the trader or trading system,
> the rules can be changed.
>
> some modern ways,
>
> 1. moving average or its slope as the trend
> 2. regression line or its slope as the trend
> 3. trendlines as the trend
> 4. a slowed version of some momentum indictor as the trend
>
> there is no official way to define trend, thus, those mottos like
> "trend is your friend" are undefined statements and can be interpreted
> in anyway one wants :) the most important thing of all, consistency!
> if you expect to use a method, then identify the method's properties
> including its patterns of in trend, trend change, and no trend. Then
> use the method consistently.
>
> There are more ways in use, please feel free to post your thinking.
>
> -Lawrence Chan
> during the stupid greenie period ...
>
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