Here is a trade that I discussed with gg today. It’s a short on EURAUD in my opinion.
It’s important to understand how to read this indicator properly. Take some time to understand it. The slow and slowest lines needs to be properly set. The way I would set the settings is like the following, fastest = current time frame, fast = next time frame, slow = the next, slowest = next highest.
So if the current timeframe is H1, then fastest = H1, fast = H4, slow = Daily, slowest = Weekly and I have set the YYY_bars to just 24 for all of them.
When this is the case, pay attention to the slowest two lines, this is your long term trend. When its above 0 that means its up trend, and below 0 it means down trend. If you look at the following example, what we see is that the slowest long term trend has approached zero and its at a possible turning point. We see a downtrend formed. Look at the lower lows of the fast and slow value lines, its breaking lower while price is ranging flat. I have no idea if this will play out the way I’m thinking but I am short biased based on this and candle patterns. Taking a trade now might be a bit of a gamble. What’s safe is to wait for the trend to be established (slowest clearly above or below 0) and then trade the pull backs towards the higher time frame trend. Pretty simple, yea?
Even Though I made this awesome indicator, I haven’t used it much at all. I need to test it out for a few months myself
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Focus, Patience, Determination & Order in chaos