IsRising && IsFalling, Uptrend and Downtrend, and Saucer patterns
Personal opinion:
- The issue with comparing Momentum[1] to Close[1] is that Momentum measures the speed and strength of price movement, not the price itself.
- By comparing Momentum[1] to Momentum[0], you can determine if the momentum is increasing or decreasing, which shows whether the trend is strengthening (IsRising) or weakening (IsFalling).
- Comparing Momentum to Close doesn't reflect this change in speed, as Close is just a price point and doesn't capture the momentum behind the price movement. So, the original logic is not entirely correct for evaluating momentum.
Personal opinion:
- The issue with comparing Momentum[1] to Close[1] is that Momentum measures the speed and strength of price movement, not the price itself.
- By comparing Momentum[1] to Momentum[0], you can determine if the momentum is increasing or decreasing, which shows whether the trend is strengthening (IsRising) or weakening (IsFalling).
- Comparing Momentum to Close doesn't reflect this change in speed, as Close is just a price point and doesn't capture the momentum behind the price movement. So, the original logic is not entirely correct for evaluating momentum.
Thanks for the wisdom! With regards to the saucer pattern, would you say the idea of my logic is correct?
Yes! The overall idea of your logic for the saucer pattern is correct you’re looking for a shift from a short-term downtrend to an uptrend.
However, using Open alone might not be the best approach, as many traders consider Close prices or moving averages for smoother pattern recognition.
If you’re detecting a bullish saucer, you might also want to check for momentum confirmation or add a condition ensuring that the price isn't just making lower highs but is actually reversing upward.
But conceptually, your approach is on the right track! 😉
Yes! The overall idea of your logic for the saucer pattern is correct you’re looking for a shift from a short-term downtrend to an uptrend.
However, using Open alone might not be the best approach, as many traders consider Close prices or moving averages for smoother pattern recognition.
If you’re detecting a bullish saucer, you might also want to check for momentum confirmation or add a condition ensuring that the price isn't just making lower highs but is actually reversing upward.
But conceptually, your approach is on the right track! 😉
Thank you for the information!
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Hi! I just wanted to ask if someone could 'spot' me and double check if my understanding is 100% correct with regards to:
1. Coding an uptrend would be:
Open[0] > Open[1]
Coding a downtrend would be:
Open[0] < Open[1]
2. Coding a IsRising would be:
Momentum[1] > Close[1]
Coding a IsFalling would be:
Momentum[1] < Close[1]
3. Coding the 'saucer' pattern would be:
(Open[3] > Open[2]) && (Open[2] > Open[1]) && (Open[1] < Open[0])
This obviously isn't the code, but I just wanted to double check if I am understanding the concepts, of "IsRising", "IsFalling", "Uptrend", "Downtrend", and the "saucer" pattern correctly?