Dear All,
I have been using ATRMSL for quite some time now and I think this is one of the most useful indicators around. I have been involved in trading system development at some major banks (I am not a programmer but have written many systems in trade station).
A simple way to use the indicator (and applied in actual trading many times successfully):
Set up a screen with 4 charts, each in a different time frames (i.e. 4 hours, 30 mins, 5 mins and 1 min).
If the first 3 are short trade short signals in the one minute and vice versa. From here you can play various strategies such as switch to 5 mins as your trigger if you catch a trend etc.
I have however found the above technique very successful for "hit and run" trades for about 20-30 points profit and the suggested ATRMSL stop loss. Even in events of a few whip saws the losses are minimal until you catch the next mover.
Here is the question:
Can you create a Indicator/Signal which takes 4 time-frames into consideration and shows a long/short signal if the above condition is met (along with the actual ATRMSL stop loss)?
That would be a fantastic tool to further backtest the application and maybe build a trading system based on the rules.
Many Thanks and Best Regards
Andre