Disliked{quote} I wouldn't. I like to apply filters for getting into a trade. I want to know the reasoning why price has moved to that exact point, I'm very fascinated about this behaviour. The filters I like to apply are targets, LG's or stoplosszones.Ignored
I don't claim to be right and I don't have evidence -- but I've been assuming a spike breaking through a band is primary, and the explanations secondary. And that's because I can easily see many juicy spikes with no target level or LG nearby.
Another thing I've mentioned before about target levels and LGs -- it depends who and how they are drawn. If we gave 10 people the same price chart would they draw the same target levels? What if you mistakenly missed drawing a target level that would have been taken-out by a big, juicy spike? You would have passed on a great trade.
I would consider target levels and LGs more useful as a filter or confirmation -- but they are subjective (when drawn by hand) and are no more reliable at picking out reversals than a spike poking through a band.
I think the momentum filter that gets applied to candidate signals is really, really important.
Now -- your idea of a second type of signal generator that is based on target levels and LGs that uses a very tight SL as a filter, that to me makes more sense. And, with your help, I will implement that.
EDIT: Another thing about target levels I forgot to mention -- MM Detective only draws target levels for the current TF. @George was quite adamant that higher time frames were as important if not more important. Calculating MTF target levels is too CPU intensive -- and paralyzes MT4 when run from an EA. And if you were interested in trading more than one pair on different charts -- no way.