Support and resistance - Fib calc

[roughbert]

Had a very quick look at the Haiken Ashi calculations as a basis for identifying the start of a trend. It can identify start of trend candidates but if used alone would chop up a "sawtooth" into a number of little trends. I think you are back to an iterative method to override this, and would require rules about when reversals started new trends.

So if you chose a box where the height represented the maximum retracement before a trend was considered to be broken, and the width represented the longest time which you would consider waiting for further action, then you have your own personal trend definition!

Not sure whether your stop point would be the height of the box, or rather some function of it. Does your definition of a trend include your estimate of risk in exiting a position, or not?

 

[NetTecture]

Gues why I did not say use Haiken Ashi, but added some more

It is definitely good to identify trade candiates A good start. As are some other things

 

[roughbert]

Gues why I did not say use Haiken Ashi, but added some more

Sure, I will use the three line break first because it is simple and my attention span is actually not that long.

 

[NetTecture]

I dont like that one problem is - you are bound to have those stupid little trading ranges showing up.

I am currently more into pin par / reversal bar identification and keeping a running "high, low" that gets adjusted between them. Plus some stochastics - not to see "ok, things trend", but basically if the trading range is lower than 14 bar average trading range, then I do not want to trade a simple one tick breakout - the market is too flat

 

[roughbert]

... then I do not want to trade a simple one tick breakout - the market is too flat

thanks for that comment - it led me to recognize a mistake in entering trades. Can't wait to put it right tomorrow!