I uploaded a new ebook to the Advanced Trading Books part of the site today. Its actually a rather small article than a real book — Trend vs. No Trend by Brian Dolan. It was originally published in TRADERS Magazine in 2005. It describes the advanced methods of the trend detection that would work in the undetermined trend conditions. Brian describes the trend/no trend paradox that occurs often with the standard methods of trend detection. He offers additional technical indicators that would work not only in a clearly trending markets but also in the beginning and the end of the sideways market, where the majority of the trend-loving traders fail to recognize any signs of danger.
To avoid getting caught in the paradox, this article will suggest using several technical tools in conjunction to determine whether or not a trend is in place. This will in turn dictate which technical indicators are best used to gauge entry/exit points as well as provide some risk management guidance. Rather than setting forth a list of concrete trading rules, this article seeks to outline a dynamic approach to the use of technical analysis to avoid getting caught in the trend/no-trend paradox.
