The indicator that this system is inspired by (Linear Regression Channel) is only on TradingView. TradingView and the indicator are both free so feel free to try it out. I've recently stumbled across this indicator when I saw it was trending on TradingView. After lots of testing I can confidently say it's one of the strongest indicators I've used and could honestly insert it into any system.
Linear Regression Channel by ChartPrime
The second indicator is Bollinger Bands with default settings. BBs work well in tandem because of the nature of how the market expands and contracts.
The logic behind this system is simple. LRC bars accurately signal to us when the market is dangerously deviated using it's own calculations. BB is similar and helps measure volatility within the market. If the market is expanding, deviating heavily, but LRC hasn't identified any signs of contraction BUT Bollinger Bands have..we can identify and enter trends early before it starts to balance itself out. It's a divergence between BB and LRC.
LONGS (HA VARIANT):
Price has touched the lower BB.
Candles before and after the BB touch are RED (there's multiple shades of red but it has to be the darkest shade)
Enter if price has remained RED and a strong bullish candle(shadowless) has crossed the BB median line.
Target the upper BB.
Stop loss is up to the discretion of the trader.
If price closes beyond the median line, wait for another outter band touch before entry.
SHORTS
Just flip everything and the bars should be blue.
Use a time-frame that will allow you to cover your spread at minimum. Because we target the Bollinger Bands which are dynamic, the targets can be small. Meaning there's not a lot of space between the signal bar closing over the median line and the outter band. If you find the target pips too small for meaningful profit trade on a higher rimeframe so the pips in-between these targets are more abundant.
Linear Regression Channel by ChartPrime
The second indicator is Bollinger Bands with default settings. BBs work well in tandem because of the nature of how the market expands and contracts.
The logic behind this system is simple. LRC bars accurately signal to us when the market is dangerously deviated using it's own calculations. BB is similar and helps measure volatility within the market. If the market is expanding, deviating heavily, but LRC hasn't identified any signs of contraction BUT Bollinger Bands have..we can identify and enter trends early before it starts to balance itself out. It's a divergence between BB and LRC.
LONGS (HA VARIANT):
Price has touched the lower BB.
Candles before and after the BB touch are RED (there's multiple shades of red but it has to be the darkest shade)
Enter if price has remained RED and a strong bullish candle(shadowless) has crossed the BB median line.
Target the upper BB.
Stop loss is up to the discretion of the trader.
If price closes beyond the median line, wait for another outter band touch before entry.
SHORTS
Just flip everything and the bars should be blue.
Use a time-frame that will allow you to cover your spread at minimum. Because we target the Bollinger Bands which are dynamic, the targets can be small. Meaning there's not a lot of space between the signal bar closing over the median line and the outter band. If you find the target pips too small for meaningful profit trade on a higher rimeframe so the pips in-between these targets are more abundant.
Attached Image(s) (click to enlarge)
