recognize the Forex trend

recognize the Forex trend

CAT-3: Upgrade to CAT-2 for use in everyday Bars


The main part of this study will deal with the first problem. I'm going to borrow the concept of "natural trend parameters from the last project of the trends and characteristics applied to the problem of finding appropriate settings for common TA indicators that will be used in this new version of the CAT system. In order to find "reasonable" maximum length of time that it should recognize the Forex trend of the table, we proceed as follows:


The total range in pips (R) of the table divided by the total length in bars (L) is to be achieved and thus a reasonable minimum slope for the trend since the overall scheme to achieve a slope at least at some point. If we then take the average height bar in pips (A) of the scheme, as our reasonable value for the minimum achievable change in trend, we find the maximum length of time in bars (d) should take for a change from "A" should achieve as e = A / (R / L) = AL / R. Another way to say this is that if the scheme is able to achieve price movement of R L pips in bars or less, then any self-esteem trend of this card should be able to achieve change in Mr. Pips bars or less.