by bartwas1 » Tue Feb 22, 2022 6:31 am
Hi
This post is sort of continuation of my idea presented on this forum in early February.
So, I've analyzed relation of both bands (12 and 50) and it seems that more dynamic approach could be better. First - slower high/low band will get a new setting between 30 and 35, but faster will remain the same.
Secondly, as stated before if the slower band stays below faster one (set at 12) you are looking for long position and if situation is reversed you do the opposite - go short.
When faster band will enter the territory of slower band the price intends to be going sideways or ready to break in opposite direction or continue with the same. And here is next change.
With more dynamic approach you won't need to wait for a fast band (12) leaving completely slower band. It's enough for long positions when higher moving average (12) will make it clear from slower band's area and for short position obviously opposite is true - a lower moving average (12) needs to get free.
Key support and resistant places are represented by fractals for current chart. They are important, because if the first entry fails a second one is possible when the price closes around the fractal (better above it). Then a new open price is a prompt to enter a new trade.
An expansion so to speak in this trading idea is a zigzag (12,5,3) and slower one (36,5,3). They illustrate faster and slower/long term trend. Colours refer also to price tendencies: red - downward direction, green - upwards one.
Slope change indicators could be added also if necessary - HMA, for example (settings for faster and slower: 22-20, 70-90)
To sum up: a key here is to have an alignment of indicators telling the same thing which is direction either up or down.
Visual presentation added also.
Good trading - B.
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