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Price Trend

There are several ways of depicting price trends on a price chart.

Creating a Price Trend Algorithm

To create an algorithm for the two methods above you can use "f(x) BaS Creator" in the trend & Fibonacci filter section. Activate the Trend Lines Filter and select the Add button.

Trend Comparison

As in the example picture above, the existence of triangular ratios is very important. From the example it can be seen that the overall trend is indeed up, but a trend reversal has appeared at point C, on the other hand the narrow distance between C and D, reinforced by the distance AC and AD which are already equivalent, it can be concluded that the upward trend in prices is saturated.

Trend Comparison

Comparison of 2 trend lines can be in the form of convergence, line intersection, elasticity and endpoint position value. Trend comparisons can also be made even though the methods used are different.

Narrow
Widen
Intersection

Trend Comparison

Price Vs Trend

As previously explained, a trend is something that has passed, but nevertheless its existence is used to predict which direction the trend will continue. In this case, with the projection line, we can find out at which point the price is at, whether it is below the trend line or above the trend line.

The current price position compared to the previous trend

Filter variables for price and trend comparison

Fibonacci Retracement

You can find an explanation of the Fibonacci formula from other references, here we will only explain how to use the Fibonacci chart to build a trading algorithm. In practice, the Fibonacci chart is used to see the level of price levels, it can be an increase in price or a decrease in price.

Fibonacci Chart

Variables on Fibonacci Retracement to create Filter

Fibonacci variables in some ways have similarities with trend variables, especially in the simple zig-zag method, such as trend direction, and range of observations.So it will only be explained in a different part only.

Fibonacci Variables