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Direct MessagesDate/Time: Fri, 10 May 2024 04:17:59 +0000
Post From: Does SC have a one time framing up and one time framing down indicator?
| [2021-03-02 22:03:23] |
| User877753 - Posts: 152 |
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Hi Tom, The definition you quoted is the original definition of a trend from the original Charles Dow theory, more than a century ago. When defining an UpTrend, I see no value to evaluate the highs. What counts is the lows : "Higher Lows" means that buyers win each bar against sellers, whatever timeframe we are in. But when a Lower Low is printed, then buyers lose battle. As in any war, the next battle is key. - if the next bar is a Higher Low, the bulls regain the advantage, and the trend is still up. - f next bar is again a Lower High, then bulls lost this war and Uptrend is over. Now is the time to examine whether the trend is downby looking at the highs, and checking if we have a "Lower High". Successive Lower Highs would then qualify a Down Trend. That's how Mr Dalton defines OneTimeFramming: "A trending situation where in an uptrend, the low of the previous bar is not broken to the downside by 2 tics or more." Note that M. Dalton is allows some leeway with a tolerance, only ounce, of a "one tick" pull-back for the bulls/buyers : you can lose a battle, but without too many casualties. That tolerance ends with a second one-tick pull back : don't lose two battles in a row. Last point: as you suggested, a sequence of higher lows and lower highs, after a sequence of higher lows, would mean a compression - it happens all the time as the trend ages, before resuming or ending in a DownTrend. But a compressed UpTrend is still an UpTrend, until proven not. Hope this helps. JM |