trendline identification
Author: tradercn
Creation Date: 11/3/2011 12:03 PM
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tradercn

#1
I try to trade stocks which trendline angles are 45 degree and trends lasted for at least one(or two) month. But I don't know how to identify that. I try to identify that by two ways,
1, either tell the slope of the Linear Regression line
2, or tell the trend strength by count of the % of trendscore which is 10 in the certain period, for example, one(or two) month.
Do you have idea about the above two ways? or, do you have any better idea?
Thanks.
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Eugene

#2
Hope that helps:
QUOTE:
1, either tell the slope of the Linear Regression line

LinearRegSlope
QUOTE:
2, or tell the trend strength by count of the % of trendscore which is 10 in the certain period, for example, one(or two) month.

Series is Above a Value
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Cone

#3
It's pretty difficult to determine the value of a "trendline angle" since it depends on the physical dimensions of the chart, the bar pixel width, and the transformation of price values on the vertical axis.

The only way I know how you can achieve a test for a true 45 deg angle is with a Point & Figure chart, which uses square box sizes. Refer to the WealthScript Programming Guide: Backtesting with ChartStyles.Trending > Column Class (Reference) > Point and Figure > TrendLine Class.

The "Point & Figure (PnF) Basic" script is probably the only example that shows you how to access the trendlines. I can't dedicate myself to helping you with a solution here now, but if you're interested in PnF and want to revisit it sometime next year, just post here again after January 2012 :)
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DIY

#4
I am also interested in advancing the linear regression trendline concept. I think an alternative method, which can be tedious, is to drop the RegressionChannels on the right of screen onto the chart and extend for the required number of bars. Then read the data at each end then do a CofV calculation = (final-start)/start % for n bars or (final-start)/start/no. bars % for individual bars
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