what people fail to realize is the definition of ALF and TVI and it's role . It replaces the need of other indicators like volume, oscillators, moving average etc.... Im not saying if one realizes the "definition" more than that is all you need for this system. In my opinion if one cloud LOU's system with too many indicators then it defeats the purpose of testing the system. However, do what feels right for you but understanding why and how it works helps.
Also, it helps to learn intermarket relationships as to "WHY" the market is moving. I'm not not an expert but I feel more confident in trading overall using LOU system and I try to trade using no indicators but thats' a different story. THat will take some time for me.
" ALF the blue line on screen functions as a continuously self-adjusting overbought/oversold line. Buy when price goes above the line, sell when price goes below (similar to a Stochastic except that ALF is both the 20 and the 80)"
TVI measures the relationship between incoming ticks for a given volume. If upticks outnumber downticks the TVI rises, and vice-versa. from LOU's first page
Also, it helps to learn intermarket relationships as to "WHY" the market is moving. I'm not not an expert but I feel more confident in trading overall using LOU system and I try to trade using no indicators but thats' a different story. THat will take some time for me.
" ALF the blue line on screen functions as a continuously self-adjusting overbought/oversold line. Buy when price goes above the line, sell when price goes below (similar to a Stochastic except that ALF is both the 20 and the 80)"
TVI measures the relationship between incoming ticks for a given volume. If upticks outnumber downticks the TVI rises, and vice-versa. from LOU's first page