Cableguy
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Hi all,
Please excuse me if all this sounds a bit stupid, I'm new to trading and hoping to better my understanding of the various methodologies used.
I downloaded a years worth of historical EOD data on the Dow, I wrote a simple application to extract the raw data and do analysis purely on higher highs, and then higher highs and higher lows. You can probably see where I'm going with this, I want to identify early uptrends using jus the price no other indicators.
From what I can see it practice this kinda works, the tool could identify the trends and display them, however, in most cases the uptrend is identified and then a subsequent downtrend follows or, suddenly a lower low but yet a higher high (but not always). I've also seen in some cases (nothing appears to be consistent) the difference between the high and low price would start to deflate as the pattern started to consolidate.
Here's my questions/thoughts:
1) Is it actually possible to use this type of very basic trading indicator?
2) Could I include other indicators to verify the uptrend other then just price?
3) Am I wasting my time? (Of course I hear you mumble)
Cheers
Quintin
Please excuse me if all this sounds a bit stupid, I'm new to trading and hoping to better my understanding of the various methodologies used.
I downloaded a years worth of historical EOD data on the Dow, I wrote a simple application to extract the raw data and do analysis purely on higher highs, and then higher highs and higher lows. You can probably see where I'm going with this, I want to identify early uptrends using jus the price no other indicators.
From what I can see it practice this kinda works, the tool could identify the trends and display them, however, in most cases the uptrend is identified and then a subsequent downtrend follows or, suddenly a lower low but yet a higher high (but not always). I've also seen in some cases (nothing appears to be consistent) the difference between the high and low price would start to deflate as the pattern started to consolidate.
Here's my questions/thoughts:
1) Is it actually possible to use this type of very basic trading indicator?
2) Could I include other indicators to verify the uptrend other then just price?
3) Am I wasting my time? (Of course I hear you mumble)
Cheers
Quintin
