How to define market trend ?

 

Hi

I am trying to make a trading system but so far not much success.

My system is very simple::

Stochastic : 14 3 3

When stochastic cross 80 and falls down then open sell.

When stochastic cross 20 and moves up then open buy.

Time frame is 15M.

So far lots of lossing trades.

I think If I trade with trend and skip trades against trend then I will get more winning signals.

I tried to use 200 EMA but did not worked well.

Example: If market is above 200 EMA only take buy trades and If market is below 200 EMA only take sell trades

The main problem is that I do not know how to define the market trend correctly.

Can some one help me in this regard.

BEST WISHES,

-NEWTRADER

 
newtrader1:
Hi

I am trying to make a trading system but so far not much success.

My system is very simple::

Stochastic : 14 3 3

When stochastic cross 80 and falls down then open sell.

When stochastic cross 20 and moves up then open buy.

Time frame is 15M.

So far lots of lossing trades.

I think If I trade with trend and skip trades against trend then I will get more winning signals.

I tried to use 200 EMA but did not worked well.

Example: If market is above 200 EMA only take buy trades and If market is below 200 EMA only take sell trades

The main problem is that I do not know how to define the market trend correctly.

Can some one help me in this regard.

BEST WISHES,

-NEWTRADER

Hi Newtrader,

Try to use the 200 EMA/SMA on a higher timeframe,like H1 or M30,to define the trend..then check if your stochastics entries(M15,direction of trend) work fine,by visually surveying the past 50 signals or so..then,if you are convinced,try to demo it to get the nuances of the system..the final decision is yours to take

 

Hi

Thanks for taking the pain to give a nice idea.

I would really appreciate if some one tell me a way to find a market trend with same time frame.

I am currently using 15Minute time frame and I do not want to look at higher time frame. I only have one monitor

Is is possible to use some indicator in 15 minute to tell me about market trend?

BEST WISHES,

NEWTRADER

 

hi

newtrader1:
Hi

Thanks for taking the pain to give a nice idea.

I would really appreciate if some one tell me a way to find a market trend with same time frame.

I am currently using 15Minute time frame and I do not want to look at higher time frame. I only have one monitor

Is is possible to use some indicator in 15 minute to tell me about market trend?

BEST WISHES,

NEWTRADER

Hi,

To find market trend u should switch to higher TF and you/ll know where the market goes to ...trend 15 m different from trend in higher TF ...ex. higher TF is uptrend but 15 m TF is downtrend ...it means 15 m TF only retrace before going to same direction with higher TF....u can use zigzag indicator to find the trend.....I 've only one monitor too but I can tile few TF in one....

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I find trends on larger timeframes much more stable, I like daily timeframes

 

Yes it is a good idea to look higher time frames.

Can some one tell me how to find the trend if I am doing trading in a monthly time frame?

BEST WIHSES,

NEWTRADER

 

newtrader1

If you have problems finding trend on MN1 time frame:

Switch to 200-years timeframe - you'll see a trend very very clearly

I'm not sure you were serious with this question.

Reason: