Way to tell if market is bull or bear?

• 06/18/2021 at 12:02 PM #171984
  Monobrow

  I have an algo that performs well in certain markets – let say for example bear markets.

   

  Is there a function or code with PRT that will help me assess which trend we are currently in? clearly I assume this is a wide open question (how long is the trend etc). But in general, id like to say

  If bear market then execute code

  elseif

  wait 🙂

   

  any ideas?

   

  thanks!

  

  Monobrow

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  06/18/2021 at 12:21 PM #171985
  robertogozzi

  The most classic way is to compare  the price against Sma200, but you may prefer different periods.

  Another way is to compare the current price agains that of N periods ago.

  The best way is trying to spot some Higher Highs and Higher Lows or some Lower Lows and Lower Highs.

  Furthers methods can be coded.

   

   

  

  robertogozzi

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  06/18/2021 at 12:44 PM #171986
  Monobrow

  Thanks Robert, much appreciated.

   

  its the higher, high – lower, lows code that im really interested in. Was hoping that you or someone else had already done the legwork on this? Something perhaps that could be optimised to to try and find a “sweet spot”, while trying to avoid overfitting of course!

   

  thanks!

  

  Monobrow

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  06/18/2021 at 1:29 PM #171991
  GraHal

  The ROCnRoll Indicator gives an easily spotted change of direction at any / all Timeframes.

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  Monobrow

  

  GraHal

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  06/18/2021 at 3:48 PM #172002
  robertogozzi

  I have this code to spot the last 3 HH’s and 3 LL’s, but the main issues with this code are:

  • validity of the definituion of HH and LL, I used to scan by a new HH o LL within the last N candles and consider it valid only if there is a reversal pattern (two differently coloured candles)
  • lag, after three HH’s and LL’s the trend might be close to reversal

  I would try another solution, ROCnRoll Indicator as suggested by GraHal or Sma200 or a combination of other indicators.

  The choice of the TF may also affect the decision.

  DEFPARAM DrawOnLastBarOnly = TRUE //DEFPARAM CalculateOnLastBars = 1000 // //ONCE LB = 5 //5 LookBack periods LB = max(1,min(999,LB)) // ONCE HH1 = 0 //previous Higher High ONCE HHbar1 = 0 ONCE HH2 = 0 //previous Higher High ONCE HHbar2 = 0 ONCE HH3 = 0 //current Higher High ONCE HHbar3 = 0 // ONCE LL1 = 0 //previous Lower Low ONCE LLbar1 = 0 ONCE LL2 = 0 //previous Lower Low ONCE LLbar2 = 0 ONCE LL3 = 0 //current Lower Low ONCE LLbar3 = 0 // ONCE MyTrend = 0 Bullish = close > open Bearish = close < open // IF summation[2](high = highest[LB](high)) AND Bullish[1] AND Bearish THEN HH1 = HH2 HHbar1 = HHbar2 HH2 = HH3 HHbar2 = HHbar3 HH3 = max(high,high[1]) HHbar3 = BarIndex ELSIF summation[2](low = lowest[LB](low)) AND Bearish[1] AND Bullish THEN LL1 = LL2 LLbar1 = LLbar2 LL2 = LL3 LLbar2 = LLbar3 LL3 = min(low,low[1]) LLbar3 = BarIndex ENDIF // //MyTrend = 0 IF ((HH1 < HH2) AND (HH2 < HH3)) AND ((LL1 < LL2) AND (LL2 < LL3)) THEN MyTrend = 1 ELSIF ((HH1 < HH2) AND (HH2 < HH3)) AND ((LL1 > LL2) OR (LL2 > LL3) OR (LL1 > LL3)) THEN MyTrend = 0 ELSIF ((LL1 > LL2) AND (LL2 > LL3)) AND ((HH1 > HH2) AND (HH2 > HH3)) THEN MyTrend = -1 ELSIF ((LL1 > LL2) AND (LL2 > LL3)) AND ((HH1 < HH2) OR (HH2 < HH3) OR (HH1 < HH3)) THEN MyTrend = 0 ENDIF // DrawText("HH1",HHbar1,HH1 * 1.001) DrawText("HH2",HHbar2,HH2 * 1.001) DrawText("HH3",HHbar3,HH3 * 1.001) // DrawText("LL1",LLbar1,LL1 * 0.999) DrawText("LL2",LLbar2,LL2 * 0.999) DrawText("LL3",LLbar3,LL3 * 0.999) // RETURN MyTrend AS "Trend",0 AS "0"

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  DEFPARAM DrawOnLastBarOnly     = TRUE //DEFPARAM CalculateOnLastBars = 1000 // //ONCE LB    = 5   //5  LookBack periods LB           = max(1,min(999,LB)) // ONCE HH1     = 0   //previous Higher High ONCE HHbar1  = 0 ONCE HH2     = 0   //previous Higher High ONCE HHbar2  = 0 ONCE HH3     = 0   //current  Higher High ONCE HHbar3  = 0 // ONCE LL1     = 0   //previous Lower Low ONCE LLbar1  = 0 ONCE LL2     = 0   //previous Lower Low ONCE LLbar2  = 0 ONCE LL3     = 0   //current  Lower Low ONCE LLbar3  = 0 // ONCE MyTrend = 0 Bullish      = close > open Bearish      = close < open // IF summation[2](high = highest[LB](high)) AND Bullish[1] AND Bearish THEN HH1       = HH2 HHbar1    = HHbar2 HH2       = HH3 HHbar2    = HHbar3 HH3       = max(high,high[1]) HHbar3    = BarIndex ELSIF summation[2](low = lowest[LB](low)) AND Bearish[1] AND Bullish THEN LL1       = LL2 LLbar1    = LLbar2 LL2       = LL3 LLbar2    = LLbar3 LL3       = min(low,low[1]) LLbar3    = BarIndex ENDIF // //MyTrend = 0 IF ((HH1 < HH2) AND (HH2 < HH3)) AND ((LL1 < LL2) AND (LL2 < LL3)) THEN MyTrend   = 1 ELSIF ((HH1 < HH2) AND (HH2 < HH3)) AND ((LL1 > LL2) OR (LL2 > LL3) OR (LL1 > LL3)) THEN MyTrend   = 0 ELSIF ((LL1 > LL2) AND (LL2 > LL3)) AND ((HH1 > HH2) AND (HH2 > HH3)) THEN MyTrend   = -1 ELSIF ((LL1 > LL2) AND (LL2 > LL3)) AND ((HH1 < HH2) OR (HH2 < HH3) OR (HH1 < HH3)) THEN MyTrend   = 0 ENDIF // DrawText("HH1",HHbar1,HH1 * 1.001) DrawText("HH2",HHbar2,HH2 * 1.001) DrawText("HH3",HHbar3,HH3 * 1.001) // DrawText("LL1",LLbar1,LL1 * 0.999) DrawText("LL2",LLbar2,LL2 * 0.999) DrawText("LL3",LLbar3,LL3 * 0.999) // RETURN MyTrend AS "Trend",0 AS "0"

   

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  robertogozzi

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  06/18/2021 at 4:57 PM #172008
  Monobrow

  Thank you both for the ideas – much appreciated – that is my weekend sorted now 🙂

  

  Monobrow

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  06/18/2021 at 5:24 PM #172010
  GraHal

  Link to Roberto HH & LL code added as Log 289 here …

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  GraHal

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  06/18/2021 at 9:02 PM #172015
  pableitor

  Roberto, re. your code, pls correct me if I’m wrong but it seems to me that what you call lower lows “LLn” maybe should be called  Higher Lows (HLn) , since each of them are higher than the previous one , arent they ?

  

  pableitor

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  06/18/2021 at 11:14 PM #172019
  robertogozzi

  I don’t want to tell Lower Lows from Higher Lows (and the other way round), as when I detect 3 LL’s or 3 HH’s I check if they are in the correct order, otherwise I’ll ignore them

   

  

  robertogozzi

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