It really depends on the target time slice as to what is considered significant or not. For a non-daily centric short term strategy the same flow creating the same move as referenced in your quote would be considered highly significant and might be ...

Stating The Obvious and The Quest For Wisdom

The Anatomy of a Market and Assumptions - again — To the 3 individuals (all family relations no doubt) who have followed along and read the material, downloaded the Excel sheet and tried to follow along with my methodology you might feel a bit ...

What Is a Trend?

I offer the following by way of critique of commonly held TA assumptions that everybody takes for granted and not as a critique of your efforts. Please carry on. Common TA assumptions should be scrutinized by anybody who wants to trade with the ...

Trendline breakouts

Here is one possible application. url

What Is a Trend?

It's the whole mindset that matters. It's not enough to just talk the game - you really have to believe it and yes it's refreshing to see that a few get it. Just a few lol.

Stating The Obvious and The Quest For Wisdom

This is how I use correlation: url

Correlation

Trend traders must identify the trend. Most don't have objective means to do so. The method outlined will help to overcome that. The whole point was to make it objective. If objectivity doesn't work for you then by all means don't use it. The ...

What Is a Trend?

Thanks for your post. My objective in providing this analysis was to elevate the discussion. The thing that has bugged me ever since I read twoblink's book is the woeful understanding of statistics and a general ignorance on the subject of trends. ...

What Is a Trend?

Epilogue — Although it is an extraordinarily time consuming process of putting a worksheet together with its related charts, it is nice to see that the price can in fact be used in conjunction with the correlation to indicate strengthening ...

What Is a Trend?

Calculating Correlation Part 2 — In the worksheet I progress forward 10 data points at a time with a series of three charts each as a sort of step forward function. In this way time lapse is simulated and a discussion is provided of how a ...

What Is a Trend?

Calculating Correlation Part 1 — Let’s assume that our maximum desired holding period for a given trade is 400 minutes. On the 10 minute data provided in the previously referenced Excel workbook, this equates to a maximum of 40 data points. ...

What Is a Trend?

The Trend Paradox — There is a bit of a paradox with regards to drawing the ideal trend line. When a trend line fits the data perfectly (or nearly perfectly) according to our previous metric, R^2, we get a very high value that approaches 1 for ...

What Is a Trend?

Statistical Techniques for Drawing Trend Lines With Excel — This is a summary of steps that can be taken to draw a statistically sound trend line on a chart from within Excel. Here are the basic steps: You might find as you start testing ...

What Is a Trend?

Using Excel to Draw Trend Lines Addendum — If you need more information on the topic of drawing trend lines within Excel, this page, titled “Quick’n’ Dirty Regression Tutorial” contains some very good introductory information on the types of ...

What Is a Trend?

Using Excel to Draw Trend Lines Part 3 — Finally, let’s look at the polynomial trend lines. (make sure to check Options, Display R-squared value on chart again as it comes unchecked when you select moving average). You will notice that you can ...

What Is a Trend?

Using Excel to Draw Trend Lines Part 2 — You should see a black trend line now running through the data. Also note that there is a value “R^2 =” on your chart. You can use your mouse to drag that number off the data series if you have trouble ...

What Is a Trend?

Using Excel to Draw Trend Lines Part 1 — There are a number of different ways to draw trend lines within Excel. Rather than turn this into a primer on how to use Excel to draw simple trend lines, please download and refer to the attached ...

What Is a Trend?

R Squared — The simplest way of measuring how well a drawn trend line fits the underlying data is to figure the coefficient of determination or R squared (R^2). This calculation gives an objective means of determining how well a given trend ...

What Is a Trend?

Trend Basics — From the underlying assumptions laid out previously regarding more statistically sound ways of determining trend, it can be stated that: One additional common misconception with regards to trend is that it must consist of a ...

What Is a Trend?

How Order Flow Impacts Transitory Volatility — Persistent deviation from underlying fundamental value tells us that on the very short term, price fluctuations are primarily as a result of short term order flow. (Short term order flow can be ...

What Is a Trend?