Understanding TREND !

One of the major dilemmas faced by the traders is regarding Trend. Here let us try to understand it by standing on the shoulders of Giants in the field of financial Markets.

1. Interesting readings on Momentum. The large amount of research freely available on the web provides a solid foundation for the motivated market participant.
2. How to draw a Trend Line. Many of the details in TA is important  and nuances in TA should be considered.
3. Jim Sogi on Trends
4. Phil a DailySpec author on Trends
5. Trend following by Rocky Humbert
6. Trend spotting from Kensmith
7. The classic by chairman of DailySpec and the chief speculator on Negative feedback
8. Range and Trend by Bill Rafter

NSE Adv- Dec Line : Identifying Day Structure

As an Intraday trader, I want to arrive at a working hypothesis of whether the day is trending or ranging? For this I use the following proxies inspired from Brett

1. NSE A-D Line ( ADL): I would prefer a calculation from the open . As an intraday trader the overnight situation may be misleading . As of now I could not get ready caluculation.How this Adv-Dec is developing as the day progresses is an important factor in my decision to fade strength or trade for breakout moves. This will also guide me in position sizing, adjusting the tightness of stoplosses, Necessity for taking scalping profits or scratching the trade.
2. SECTOR BEHAVIOR : How the leading sectors are behaving. What the leading stocks in these leading sectors doing. I am taking 5 stocks from 8 sectors ( IT, Pharma, Metals, Realty, OIL, Banking, Auto, FMCG)
3. CORRELATED ASSETS : Behavior of USD/ INR, oil, Interest rates and commodities