If anyone would be grateful enough to share their thoughts on the following topic, that would be sincerely appreciated:
I usually trade on the 15 minute charts. In determining the "trend," I know that there are a number of ways traders go about this, whether its using the 5 EMA & 10 EMA of the 4 hour chart to determine the trend of the 15 M chart, or whether ther price is above/below the 100 SMA, 150, SMA, or 200 SMA.
Personally, I believe drawing trend lines on the daily chart is the best way to determine the trend. However, I've been back testing with software that I need to program, I while I am proficient in programing with indicators and moving averages, programing trend lines is beyond my capabilities.
Just to contribute my two cents to the topic, I have found that the 21 EMA & 55 EMA work well on the 1 H chart to determine the trend on the 15 M chart (ie., If 21 EMA above 55 EMA, then trend is up, etc.) I chose 21 and 55 since they are numbers in the fibonacci sequence, no other reason.
Also, I'm not too convinced of the merits of the ADX/DMI.
So, if would anyone please let me know how they go about this?
Thanks,