[cowcool]

How to spot the beginning of a trending day?

Thx!!

[brownsfan019]

Is that all you need today cow?

To know whether it's trending or choppy for the day?

That's it?

[momentom]

cowcool, have a look at market profile.

[Xuanxue]

You only need two charts and three indicators to do what you want to do. Forget market profile.

The first indicator and chart, really, is a 5 minute of $TICK. If you're not aware of $TICK it's a market internal that you'll have to add to your software as a symbol manually. When TICK is trading above the mean (0), more stocks are trading at their offer price than their bid. That means the market can't find enough buyers. In other words a train. The opposite is true if below the mean. It's a mess to look at, though, and even more challenging to interpret, especially when concentrating on set-ups. That's why you put a 10 period or higher volume weighted moving average orover it and bold the line so all you have to do is glance at it.

Next you need a 30 minute chart with only a 20 period exponential moving average on it.

When TICK is trading above the mean consistently, buy the pullbacks to the 20 ema on the 30 minute chart, but only when the moving average's move confirms other signals. If below the mean in TICK, fade the rallies.

If you're ever unsure in sideways action or think you could be had in a fade, only buy or sell after action moves 4% above the prior session's close to the upside or below the low in a bear. To minimalize risk even further, enter after a 2% retrace testing the validity of the breakout. What you're doing then is using people's money who are stuck on the wrong side of the market fueling a thrust.

That right there took me years. You should appreciate it and use it.

[cowcool]

fei zhang xie xie xuanxue ... wo zen de hen gan jie . Thx!

[stanlyd]

higher high's and higher lows = uptrend
lower high's and lower low's = downtrend

Just look at a good time frame chart for you and see which of these patterns is taking place
Also if you want to use internals look for the same series of hh's or lh's in something like the NYSE advancers..

[UrmaBlume]

"How to spot the beginning of a Trending Day?"

While this is written for the emini S&P the same principles apply to most other markets.

Before the open:

Night Session trade is mostly done by professional traders which gives us a very good idea of professional sentiment in world equity markets.

Night session trade in this contract currently averages around 250k contracts. The first clue of a trending day is above average trade - 300k or more.

If price trended during the night session on an above averge trade this is your second pre-open clue of a trending day.

If the difference between UpVolume and DnVolume is more than 15k contracts during the night session this is your third pre-open clue of a trending day.

Of note is that over the long term over half the time one extreme of the 24 hour session is made during the night session.

The open:

Again over a fairly high percentage of the days the open is near (20% of the day's range) one extreme or the other. On days where price passes through the open more than a few times during the first hour trend days are unlikely.

On the other hand on days where the three pre-opening conditions mentioned above are in effect and price departs decisively from the open during the 15-30 minutes of trade you have a faily good indication that the open has established one extreme and that trend trading away from the open will establish the other.

[thalestrader]

Here's an interesting article I copied year's ago from Linda Raschke.