In Traders’ Tips of February 2021, the focus is Richard Poster’s article in the February 2021 issue, “Trend Strength: Measuring The Duration Of A Trend”.
Function In his article in this issue, Richard Poster outlines several common ways to evaluate the strength and duration of trends. Then he evaluates their sensitivity to volatility. Next, he steps up our game a bit by proposing an indicator that seeks to measure a trend’s persistence rate, or TPR for short. TPR turns out to be relatively insensitive to the influence of volatility.
Financial markets are not stationary; price curves can swing all the time between trending, mean-reverting, or entire randomness. Without a filter for detecting trend regime, any trend-following strategy will bite the dust sooner or later. In his article in this issue, Richard Poster offers a trend persistence indicator (TPR) for helping to avoid unprofitable market periods.The TPR indicator measures the steepness of a SMA (simple moving average) slope and counts the bars where the slope exceeds a threshold. The more steep bars, the more trending the market. Threshold, TPR period, and SMA period are the parameters of the TPR indicator.
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In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Avoid losing contact!Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq 防止失联,请立即行动,加入本猫聊天群: discord.com/invite/ZTGpQJq
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