Disliked{quote} indicators are nothing more then price calculated in different way. you need to know always why it is calculated in this way, what are the advantages and disadvantages and you need to do this calculation manuell too to understand what it will exactly calculate. all indicators can be used or are worthless, depends what someone is looking for, and what he wants to avoid. "95% of the time price closes above or bellow the open. ". i dont understand this sentence, of course price will do this, depends on timeframe of course. in 1 min not 95 %...Ignored
For example if im trading a daily timeframe, than im looking at the intraday prices from m5/m15.
However when speaking about actual timeframes as seen in mt4, for example - m30,h1,h4,d1.
It only makes sense to me to use the traditional indicators on d1 only (the indicator must calculate from d1 ohlc bars only). The settings seem logically fit only for d1 bars.
I've got that idea from the 60 minute moving average on m1 bars.
Why 60 and not 20 or 50? Because it takes 60 bars from m1 to form one h1 bar. And it seems to me logical to view the average of the hourly period from m1.
I've begin to consider most traditional indicator ideas great. However I believe that for example the momentum indicator should only be used on say 10 last daily candles, calculated from the d1 bars. However trading the information it gives, is more logical to me from shorter timeframes.
My issue though is based around the 52weekly period (52 weeks make a year) high/low (a popular technique used in stocks.).
I consider it dynamic because with each current day, it looks at 52 weeks of data ago.
However I preffer a static aproach. Which in this case could be considering the evolution of highs/lows from the 1st of january to the 31st of december.
Just like one can trade the evolution of the daily candle from its open to its close, rather than using a dynamic approach of 1440 period high/lows from m1.
I realise that my explanation is not clear enough. By high/low i consider something similar to the donchian channel. However I thought that i might hain something from writing my idea in this currently popular thread
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