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Best trend trading indicators

 

Best trend trading indicators

What are your favorite indicators for trading in trends and how do you use them?

Sat, 03/09/2019 - 12:58am
 
akgladius

If I am trading short term using 5minute or 1 minute chart to determine my entry and exits, I check 1hr and 4hr chart to determine the trend. I use stochastic indicator on all my charts. Never trade against the trend.

 
KevinBanks

come monday I am adding rsi to my hma 200, hma 10 along with my macd. I also look at 3 charts, the 4hr, 1hr and 5 min time frames. if all three are in alignment then I open a trade. I did not come up with this strategy. I got it from others in apiary fund. I do know that this strategy will keep you away from bad trades.

 
Rookie

Kevin, might I suggest you only need two indicators at the most.
1. for direction
2. for momentum.

A direction is simple with an MA (HMA EMA etc), bands or even Ichimoku.
Momentum is done with an oscillator. Sto, CCI, MACD etc.

I like a clean screen to see the PA. My choices are;

1, for direction, a double Bollinger band. because all price action is moving toward or away from the mean (center line)
2. for momentum, a CCI set at 10 periods (short term) and 130 signal lines.

 
scottpatton

I really like the Ichimoku indicator with it's strategies along with price action/multi time frame analysis. You will need to set your charts in Alveo 26 periods from the right side to get the future cloud to draw out correctly if you try this indicator.

Here's an introduction to Ichimoku:
https://www.youtube.com/watch?v=Y9QM8WRRWzE

 
FXGold54

I am a big fan of Ichimoku and do use it. That said the best trend trading indicator I have ever seen is...My Eyes

 
carls717

All those Japanese cars look the same to me.... OK, that was a joke - not a good joke, maybe, but a joke. Agree with Allen that the eyes are darned good indeed. The big kahuna here at Apiary seems to use them exclusively. My setup screen has two time periods, M5 & M15, both with EMA8 and EMA 34 for directions. A couple other EMAs in lighter font for gauging things, but that validates the trend for me pretty well. For momentum, I have default STO on both, for SL guesstimates on the M5 I have a very thin ATR level at the bottom, and for additional Momentum an ADX (with only the Plus and Minus showing) on the M15. As I get better at this and gain good judgement, these indicators should prove to be extraneous. Good judgement, of course, comes from experience. Which, of course, comes from Bad judgement. Happy Trading!

 
joey88x

I say use whatever works for u, but I stay away from 95% of the common indicators, again, 95% of the ones Alveo has to offer. I on the other hand am That Indicator Guy that is going to try to help everyone at once...if ur not completely satisfied with the indicator/indicators that ur using now, I have an answers to the questions that u never knew to ask. I am amassing an arsenal of custom indicators, many of them u never heard of, and all of them designed specifically for Forex Trading, and I will be making them available to all here at the Apiary Fund. I will be posting all I have now and all I find in the future under my topic "Me, My Indicators, and I" For anyone here using any tech tools or indicators in there trading, I urge u to follow my topic and reap the benefits of my fruitful efforts. I'm playing no games here and I can prove or back up everything I say and do, so do urself a favor and come see what I have found for us Forex Lifers. I will be posting my Algorithm Framework today, and maybe even my List of moving parts to, but I will be coming out with lots to use for everyone soon. To start with, and to answer the original question Ace1 has asked, one of my moving parts in my algorithm is an (8/20 HMA Crossing system). Its lagging a little bit, but if u only had the 8/20 hma cross to use as a tech tool and u followed the rules for this trend indication system 100%, then u would still be profitable with a high rate of wins/returns. Add this little system to ur chart and back test it for 5 minutes, and u will see what only one of the indicators I use daily can do for ur bottom line....cool? Happy Trading!

 
skucchal

I swear by the ICHIMOKU system too. The most powerful feature is the slope or angle...a car hurtling down a hill is going down, and it won't respect any speed barriers. The ICHIMOKU csen function allows a clear view of the slope...the trend. Stay off the road if a truck is heading down your way.

So much for direction. Now momentum...is a different game...Fibonacci and retracement are useful, but I've yet to master momentum. Stochastic is the most useful.

 
Davide

I look at http://www.signalscreen.com/ to find the daily stength/weakness in combination with support and resistance lines. Happy Trading

 
KAbarova

Davide

Thank you for the Website.
Your contribution to the forum is welcome
Keep the good will.
Keep trading

 
burton

Davide, thank you for the resource.

 
erikross

I agree with Rookie. You need indicators for
1) Direction
2) Momentum

However, as an Analytical-Aggressive trader, I need to confirm with multiple forecasts on different time scales, or else I am too shy to place a trade.

I have been using 4 time charts. I trade on M5,M15,H1 charts for alignment, and confirmation. I use M1 chart for clarity, and situational awareness.

The indicators I use for each chart are,
1) HMA[200]
2) HMA[20]
3) RSI[14]

I use HMAs for determining direction, and being aware of possible reversals, and I trade at the reversals. This is very easy to verify with HMAs as they change color, and the time charts show the reversal starting with the M1, and confirming at the H1.

I use RSI for momentum. The goal is to hold onto the position as the indicator lingers in the 30%, or 70% zone.

I also try and forecast the next hour by searching for alignment in Candlestick Patters that I know. For example, Double-Bottom/-Tops (M{1,5,15}) AKA tweezers (H1); Head-and-Shoulders (M{1,5,15}) AKA Three-Bar-Reversals (H1), etc. My charts are covered with markups. The more I verify my forecast, the better I feel about opening, or closing a trade at a specific price, but I need this because I am analytical, and I second guess myself without confirmation.

 
Rookie

position and percentage of the next candle provide the forecast.

 
robertopaez02

Very good advices here, I always use RSI to make my decisions...position and % of the next candle is price action .
these two RSI/price action is my trading strategy.

 
glennalhoward

I use Bollinger bands and RSI to look at trades. I try to look at 1 hr, 30 min, 15 min and 1 min to get an idea of what is happening. I still have to get consistent about my entry and exit points where I want them. It is happening slowly.

 
stevecooper1001

Look at the chart and you can see the trend. Wait for a pullback and a candlestick reversal pattern and place your trade. No need for any indicators in my opinion.

 
brighthae4

I just learned from another trader who uses M15, H1, H4, D1 charts to get overall movement of a trade. I have been using M1, M5, H1 for the short trade but I might trade that for all my trades. I am still trying to find the best technique. I found this forum has a lot of great ideas.

 
rjschusterman

I like Apiary Pivots and SMA.

 
joniup

I do all of my trading in Alveo where I have coded the maths of essentially every indicator I use however thinkorswim has some good trending indicators that I like mostly because they are generally too difficult for me to code.

A picture shown below with indicators,

1) Linear Regression channels
2) Demark Sequential (where a move is considered complete on 9 counts and 13 counts).
3) Autocorrelation (the best way to measure actual market periods in real-time, notice below in range the market has constant 14 period cycle and notice in trend in has a cycle period closer to 35.
4) 35 sma, nothing amazing but it matches the autocorrelation results for trend.
5) Mesa Sine Wave, this is complex to explain but is adding an (mathematically) imaginary line on top of price. This works in range not in trend. However you can see trend precisely because it doesn't work. During trend both lines don't cross and move to together. In range the cross should show turning points far before traditional indicators. Note this indicator is fixed period which has problems but the autocorrelation is showing in real time what the actual market period is.

All of these are much more complex than traditional indicators but I hope the picture shows there value.

thinkorswim trending indicators.PNG
 
burton

joniup, interesting.

your perspective on the sinewave indi is awesome...lovin your creative application.

can you share a range bound snapshot with the sinewave indi working?

 
ctolva

erikross, Am I correct in assuming when you see a reversal at M! you will wait 1 hour for reversal to be confirmed at the H! time?

 
itjacksonsr

I’m still working it out but leaning toward a combination of HMA for trend, MACD for momentum and stochastics for timing.

 
siegfried.fraenkel

I am using these indicators:

8 SMA applied to the close
15 SMA applied to the close
Stochastic (14,3,3)
RSI (10)

and it works great for me.

Sieg

 
freddosch7

Hello Traders, I would like to recommend this page to you, there you can wonderfully estimate your risk per trade, depending on the volatility! It has even more useful free features.

greetz Fred

https://www.mataf.net/en/forex/tools/value-at-risk

 
SDbee

I use exclusively Ichimoku, in daily chart first to look for direction, and smaller TFs fo entry and exit.