Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

Mike_Trend and DoubleMA

I've made some more changes to these two today.  This is why I don't want to release it just yet, I make changes all the time and it just gets to be too much to constantly update.   Things take time to come together, so patience please.  I'm sure you'll notice the changes on my charts, I think there is a nice improvement.

Remember, the Mike Trend histogram bars (blue or red bars) represent the TrendStrength of a moving average I am using.  I talked about this in my last video, but basically I am measuring dozens or hundreds of moving average lengths, and the resulting value on the histogram is represented like a percentage (100%).  So, 60 on the histogram means 6 out of 10 of the moving averages are showing that price will continue to rise.  A value of -100 would indicate that 10 out of 10 show price continuing to fall.

I am using DoubleMA as more of a support/resistance line.  I already have other indicators to tell me when more short-term trend is changing or has reversed.   The market provided some nice examples of this today and I will elaborate in my next post.



Anonymous said...

Do you consider the consolidation of the MMA's in your trendstrength indicator?

IMO this is the major shortfall of the TrendStrengthA indicator posted on NT forums.

During ranging periods where the MA's are grouped together closely the indicator gives lots of false signals.

Big Mike said...

Hello anonymous,

I am using VitaminC's TrendStrength for my calculations, with a few of my own twists, naturally.

If you have any ideas on how to improve his code, I'm welcome to hearing them, perhaps you can post it for all to benefit. :)


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