How many bars can one look at to identify the trend using price action?

General
2

You need at least 14 bars (this is just my convention, and by no means a standard) to identify a trend. For example if you are using 1 minute bars, you will need 14 , 1 minute bars.

If you are using EOD charts, you need 14 EOD bars…so on and so forth.

2 Likes
3

No. of Bars - I don’t know, but what I do to check the trend will detail below:

I first check the EOD chart (Daily) - Short Trend

Then I check EOW chart (Weekly) - Midterm Trend

So if both are UPTREND, then I BUY (after market has stabilized after opening)

If both are DOWNTREND, then I SHORT SELL (after market has stabilized after opening)

If both are in OPPOSITE direction, then TREND is not clear, I avoid trading.

I might sound kiddish, but this is what I do, to trade NIFTY Futures and Options.

3 Likes
4

INTRADAY VERSION:

first check the EOD chart (Daily) - Short Trend

Then I check EOW chart (Weekly) - Midterm Trend

So if both are UPTREND, then follow BUY signals from supertrend

If both are DOWNTREND, then follow SELL signals.

1 Like
5

I personally use around 100-120 candles on the timeframe I am trading. However, no perfect answer for this, it depend upon what makes sense to you.

6

Thanks karthik. Will this be sufficient in intraday too. What about trend reversal?

7

14 day convention is just to establish a trend. To identify trend reversals one needs to look at a slightly larger time frame. Here is where the accumulation and markup phase plays a role - http://zerodha.com/varsity/chapter/dow-theory-part-1/ check out section 17.2.

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its not kiddish my friend, sounds logical :slight_smile: thanks!

9

seems good…can u check for me the EOD AND EOW trend of TECHM fno…i checked EOD is in buy mode and past 2 days it moved more than 100 rupees…thats great piece of info…thannx lot…

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NTPC is in BUY mode in EOD,supertrend gave signal in intraday 2 days before and stock is now moved ore than 6 rupees.

11

the perfect answer is told by $ud3$h

12

Does that mean I am barred from answering?

13

Rahul im sry…dont mistake go can read that answer and might get good idea for that only bro…again am sry.

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No issue bro, that’s OK. Its just that I am a very short tempered person. I am sorry too. All settled now, have a good day :slight_smile:

15

.many good friends start from such quarrels and fights :)-

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Ya that’s true :slight_smile: