Discussion of article "How Long Is the Trend?"
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New article How Long Is the Trend? has been published:
The article highlights several methods for trend identification aiming to determine the trend duration relative to the flat market. In theory, the trend to flat rate is considered to be 30% to 70%. This is what we'll be checking.
1.1. We will start our research with the classic trend power indicator ADX. We will evaluate the existence of trend or flat using the level of TrendLevel. Let's assume that the trend exists if the main line rises above this level. Fig. 1 shows an example of determining Trend Zone and Flat Zone using this method. The market state will be calculated for the number of candlesticks, on which the ADX value is higher than TrendLevel from the given sample.
Fig.1 Using ADX to determine the trend/flat zone
Author: Alexander Fedosov