Here is an interesting idea I stumbled upon recently:
https://www.mql5.com/en/articles/1364
How it works: price "traps volume" before significant moves. In order to push into a trend, it needs to coil up, compress energy so to say, to be able to rapidly expand.
This pattern corresponds to this activity. There is an indicator (for mt5, but I guess somebody interested can quickly translate this to mt4) and even an ea (showing profit in backtest, which is already promising). How I would perhaps modify it, for exits I would either make some statistics (i.e. the move will make n*a number of pips in x% of the cases if a is the height of the triangle, i.e. distance between the far away fractals) or would put some moving average to let the move run and exit once it started going in the opposite direction.
Cheers,
k
https://www.mql5.com/en/articles/1364
How it works: price "traps volume" before significant moves. In order to push into a trend, it needs to coil up, compress energy so to say, to be able to rapidly expand.
This pattern corresponds to this activity. There is an indicator (for mt5, but I guess somebody interested can quickly translate this to mt4) and even an ea (showing profit in backtest, which is already promising). How I would perhaps modify it, for exits I would either make some statistics (i.e. the move will make n*a number of pips in x% of the cases if a is the height of the triangle, i.e. distance between the far away fractals) or would put some moving average to let the move run and exit once it started going in the opposite direction.
Cheers,
k
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