DislikedHi Chandra, thats "deep analysis", so i guess the rule also is that if the red lag just gets to the extreme and the blue starts to cross 0.15, its possibly a false signal, the red lag has to rest for a while at the extreme, maybe 5 -7 bars and if then the blue lag starts to cross 0.15 its a more truer signal and vice versa for shorts - is that correct, i know its mentioned somewhere in the thread, but now that you clarified here I think its a critical point if I have understood it correctlyIgnored
The general idea is correct. But I don't know what number to use. I was thinking may be 20-30 bars (in 5M), but it is one of the things that needs discretion. The reason may be that when the red lag reaches an extreme, there can be a correction/bounce.
The other one I mentioned (the recent high/low being broken) also needs discretion. This is just my consideration.
These cannot be quantified or programmed and we have to watch for them. We have to be careful, if these conditions are not met.
Regards,
chandra