Using angles to ascertain trend strength

Hello all, I’m a trend trader and have just thought of a new idea, and wondering if-

1: it is just new to me.

2: There is a fundamental flaw that I am blind to.

I’m open to your comments and suggestions.

Let’s say that you set your chart to the daily time frame, and just apply 2 EMAs ( one a period of 5, and the other a period of 10).

If these two EMAs cross and the price action continues to move in that direction, I though that I could determine if the trend is strong by measuring the angle of the two EMAs. This can be done a few ways. I just simply put a protractor on my screen , lining up the middle (90 degree) line with the candle on which the EMA cross happened. (yep I’m a really technical guy!) If the angle of the EMAs is greater then 45 degrees then the trend is strong, under 45 degrees and it is weak. This could be done with any indicator or timeframe.

What do you think? Am I missing something?

You have made the same mistake as many make. You cannot calculate an angle because the chart doesn’t have a fixed scale. Change the vertical or horizontal scale and the angle changes. And MT4 can be maddening arbitrary in its choice of the vertical scale and the limits on rescaling. Perhaps you could consider the slope ie. price over time which is constant.

Yes, that’s very true. Plus a chart is dynamic and therefore you can’t apply a fixed calculation to it. Uhm, did I just say the same as you in a more simple newbies way?

Yeah, that is what I thought as well…just putting it out there to see other’s opinion

In my opinion, EMA 5 and 10 is too tight. The EMAs will be sticking so close to the price action that it will be rendered useless. Especially since you are applying it to a Daily chart. You will realised that you do not need the EMA to tell you that a currency pair is trending or not. Try looking at a naked chart without any indicators and you will know what I mean.

Anyway, why would an angle of 45 degrees suggest a strong trend and anything below is not? Why don’t you use 35 degrees or 55 degrees? My point is a rudimentary method like this cannot be simply applied to trading the market. You will soon realise a ‘weak’ trend can continue trending for a very long time and a ‘strong’ trend can reverse its course at the next period.

The market is made of people (and increasingly trading robots programmed by people), thus it is a hotpot of emotions creating volatility that makes trading more an art rather than science.

Trading has always been an art form and never science.

You are really correct, sometimes this things happen and they are just oversight, but from what you have said we can learn from.