Category Archives: trend following

Generally, trend following setups will occur when two or more timeframes show the same bias, thus confirming one another. A classic analogy to illustrate how one may look at trends in different time-frames is by comparing them to tides, waves and ripples of the sea. The primary trend represents the tide, the secondary or intermediate trends are the waves that make up the tide, and the minor trends behave like ripples on top of the waves. When reviewing trend following setups, consider that a market tide can last for more than a year, often several years. The secondary trend represents corrections in the primary trend and can last between a few weeks and several months. These corrections retrace between one third and two thirds of the primary trend. However, a 50% retracement, or half the range, is the rule of thumb. The minor or near term trend will last anything from a couple of days to a few weeks, representing fluctuations in the intermediate trend.

Trend Trading System Design

When setting up a trend trading system, it is generally a good idea to review the trend bias from different perspectives. Just as with legal or medical advice, you‘ll want to get a second opinion before making a decision. Therefore, you will want to look review different methods for determining trend biases, combining them in…

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New Swing Trend and ZigZag Indicator

Swing trend analysis is a classic tool you may use to determine the general direction in which the market is moving. Trends are characterized by a series of highs and lows, forming a series of successive waves. Specifically, a zigzag indicator plot connects the alternating swing highs and lows. When a new price bar is…

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A Z-score Trading Strategy and the Awesome Oscillator Indicator

In this post we’re looking at how to create a Z-score trading strategy and look at how it may be used to normalize the Awesome Oscillator indicator values. Specifically, we’ll use the Z-score to condition Awesome Oscillator entries and exits. Normal Distribution & The Empirical Rule If we assume a normal distribution of data points…

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VWAP Trading In Multiple Timeframes

In a webinar hosted by NinjaTrader, we reviewed one of our most popular premium tools , the Volume Weighted Average Price. Specifically, we looked at how this price benchmark can be used in multiple timeframes. By anchoring the indicator to the daily, weekly and monthly open, one can define institutional price action zones. This in…

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Ichimoku Trading: Signals at the London Open

For a general introduction to Ichimoku trading,  please refer to our Indicator Spotlight newsletter. In this post we follow-up on a specific Ichimoku trading setup, using the professional version. Specifically, we’ll outline how the Ichimoku can be used in conjunction with the London Breakout. A recording of a webinar event discussing this approach can be…

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Trend Following Sweetspots

The Zerolag Oscillator was designed for trend following scenarios, specifically locating the middle chunk of a larger move. Below, we discuss the most important filter options. A lot of testing and tedious analysis went into this, resulting in a powerful tool for trend setup customization and signal accuracy. The following is a quick summary of…

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Trading with Multiple Time Frames

In our last webinar we went looked at how the LizardTrader Leading Indicators can be used in multiple time frames. By finding price action setups that align with key support and resistance levels in multiple time frames, i.e. higher time frame charts, we may increase your odds for profitable trading. By checking out the webinar…

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Rolling VWAP vs Rolling Pivot Levels as Trend Filters

We‘ve all heard the saying that “the trend is your friend, until it isn’t”. In this post, we’ll look at how Rolling VWAPs and Pivot levels can help us determine the trend. There are of course a variety of ways for defining the trend. The most common approach is simply comparing a number of recent…

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