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Book Overview & Buying
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Table Of Contents
TradeStation EasyLanguage for Algorithmic Trading
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An algorithm to identify a trend pullback pattern essentially consists of three components:
In order to catch an existing trend, according to what we presented in Chapter 3, we know that we can use simple moving averages. But there are other algorithms, which are a bit more elaborate, to identify a trend, including the following:
Let’s delve into these next.
The Supertrend indicator is based on volatility. It consists of two main components: a moving average and a multiplier.
The Supertrend indicator uses a moving average of the asset’s price to determine the overall direction of the trend. This moving average can be calculated using different periods, such as 7 days, 14 days, or 50 days, depending on the trader’s time horizon.
The function of the multiplier is to adapt...