- #1,439
- Edited 7:40am Oct 19, 2023 6:43am | Edited 7:40am
Testing has shown:
1) HH and LL repaint significantly more than HL and LH. So trade with caution.
2) The closer the 20 SMA is to the SR Line, usually within 3 pips, the better the trade entry point. Wait for price to close / open above / below, 20 SMA.
3) Waiting for 20 SMA allows the last leg repainting to complete.
4) using length 120 for SR Direction Line on M5 significantly reduces repainting.
5) Don't need to trade every SR Line....
6) The picture also shows pullbacks within trend above / below the 20 SMA. i.e where the next impluse may occur within the same SR Direction Line.
The Arrows show below where 20 SMA is within 3 pips of SR Direction Line.
Note: 20 SMA is utilised as it represents a cycle of 20 days length. To understand and if your interested, read about Hurst Cycles and this article:
https://www.sigma-l.net/p/moving-average-low-pass-filter
1) HH and LL repaint significantly more than HL and LH. So trade with caution.
2) The closer the 20 SMA is to the SR Line, usually within 3 pips, the better the trade entry point. Wait for price to close / open above / below, 20 SMA.
3) Waiting for 20 SMA allows the last leg repainting to complete.
4) using length 120 for SR Direction Line on M5 significantly reduces repainting.
5) Don't need to trade every SR Line....
6) The picture also shows pullbacks within trend above / below the 20 SMA. i.e where the next impluse may occur within the same SR Direction Line.
The Arrows show below where 20 SMA is within 3 pips of SR Direction Line.
Note: 20 SMA is utilised as it represents a cycle of 20 days length. To understand and if your interested, read about Hurst Cycles and this article:
https://www.sigma-l.net/p/moving-average-low-pass-filter