Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
What if we have three trending days in a row? They don't need to each be "bigger" trends than the prior day to still be considered trends when compared to a range bound day.
trend days do not have to be preceded by a day that has experienced a range contraction to be considered a trend day
there just so happens to be a 62% chance that it will be preceded by one, however
for statistical measurement you just have to decide on certain parameters to qualify your data and go from there
in a low volatility environment <10 pts may suffice as trend day range, but in a high volatility environment you might want to consider 15 points or 20 points range as a minimum, etc.
in it's broadest sense The market will open near its low price for the day session and build its way higher through the day, closing near its high price. The market will tend to stay above its VWAP for most of the day; for an uptrend day - and for a downtrend the converse.
if you want to get more specific , you can add other benchmarks for qualification, i.e., the $TICK, cumulative delta, pivots, etc.
Do you know the exact method used to calculate those results?
That is what I am trying to accomplish --- the source of the methodology used by "the guys" who come out with these type of session statistics. I want to generate my own so I can fully understand and verify the data.
"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Did not know this paper. Astonished that he also chose 20% as I have suggested. However, he only compares the range of trend day with the range of the prior day, whereas I have taken the average of the prior 3 days. But very close to what I was thinking...