See the attached GBPUSD,D1 chart.
At point #1 the NCI (News Composite Indicator - see here) breaks sharply downward, an excellent precursor of the impending downward landslide.
Would you have traded the pin-bar at point #2? It's hardly a perfect specimen pin-bar, but NCI has broken above its SMA(10). Stretching a Fibo across the pin-bar reveals that price subsequently reached the 161.8 level. Trading the breakout of the pin-bar would have given potentially 100+ pips profit, assuming a hindsight-perfect exit (gosh, if only that were possible......)
So where would you have exited the pin-bar trade? There's a nice bullish candle at point #3, but NCI has moved sharply downward, indicating the downslide might be about to continue. So let's take our 100 pips profit. Hindsight reveals that it was indeed a perfect exit.
Do we take the short trade on the outisde bar at point #4? The NCI continues downward, so the answer's a resounding "yes". Hindsight reveals that it was another great decision.
At point #5 the NCI crosses above its SMA(10), telling us that the downtrend is going to stall, and possibly reverse. Time to think about closing our outside bar trade.
Would we take the outside bar trade at point #6? No way, because the NCI is trending sharply upward now. Hindsight reveals that NCI saved us from what would have been a nasty loss. The NCI crossover predicted the end of the downtrend seven candles before price broke upward. Not too shabby for an indicator that's 100% price independent. It's not derived from price, so it doesn't lag like all the other indys do.
I think the NCI is way too valuable to give away for free here. I'm gonna make a fortune selling this baby. LOL. Just gotta go away now and rehearse my sales pitch. Anybody fancy a free set of steak knives?
David
At point #1 the NCI (News Composite Indicator - see here) breaks sharply downward, an excellent precursor of the impending downward landslide.
Would you have traded the pin-bar at point #2? It's hardly a perfect specimen pin-bar, but NCI has broken above its SMA(10). Stretching a Fibo across the pin-bar reveals that price subsequently reached the 161.8 level. Trading the breakout of the pin-bar would have given potentially 100+ pips profit, assuming a hindsight-perfect exit (gosh, if only that were possible......)
So where would you have exited the pin-bar trade? There's a nice bullish candle at point #3, but NCI has moved sharply downward, indicating the downslide might be about to continue. So let's take our 100 pips profit. Hindsight reveals that it was indeed a perfect exit.
Do we take the short trade on the outisde bar at point #4? The NCI continues downward, so the answer's a resounding "yes". Hindsight reveals that it was another great decision.
At point #5 the NCI crosses above its SMA(10), telling us that the downtrend is going to stall, and possibly reverse. Time to think about closing our outside bar trade.
Would we take the outside bar trade at point #6? No way, because the NCI is trending sharply upward now. Hindsight reveals that NCI saved us from what would have been a nasty loss. The NCI crossover predicted the end of the downtrend seven candles before price broke upward. Not too shabby for an indicator that's 100% price independent. It's not derived from price, so it doesn't lag like all the other indys do.
I think the NCI is way too valuable to give away for free here. I'm gonna make a fortune selling this baby. LOL. Just gotta go away now and rehearse my sales pitch. Anybody fancy a free set of steak knives?
David
Attached Image (click to enlarge)
