The Trend

[eastbay]

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What is the actual criteria that separates uptrend from non-uptrend?


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It depends? What is your timeframe?


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My timeframe? I'm asking you guys what a trend is. I'm trying to make as few suppositions as possible so as not to prejudice the discussion.

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If you want to test things (which it seems) I find moving averages as the best trend identifiers. Use a crossover or a longer term MA (ie 200 bars). If you are above it,it's an uptrend and below it a downtrend.


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Ok, there's an operational definition of a trend: if the current price is above a 200 bar average it's an uptrend.

Ok, that's actually a fairly "good" definition in the sense that I'm looking for.

Now onto part two of the question: How does one "follow" a trend once it can be identified?

eastbay