Keeping the promise given before, I start a final thread and will post EURUSD analysis on the basis of Volatility Impulse (VI) method for a week so we will able to discuss its main ideas. We will use H12 time frame and trade one bar only. It should be noted that H12 time frame was found as best one to trade in after-effects of volatility splashes.
The main idea of the method is simple - to trade in exceeding of the volatility limit and there are two rules of the method:
1. To trade by opposite way from a signal of the Volatility Value Indicator (VVI) for next bar; to open a position on the opening of next bar and compulsoryly to close a position on the closing of the bar if a takeprofit or a stoploss are not triggered;
2. In simple case scenario we have to skip all consecutive signals after a triggered stoploss.That situation corresponds to a powerful attempt to form a new trend and we have to wait for its weakening. *In advanced case scenario we have to trade if next bar colour is Magenta only (we have to skip all consecutive blue signals after a triggered stoploss).Blue signals appear as a rule on the trend birth but Magenta ones do on the spent trend.
I attached a picture to illustrate it.
The main idea of the method is simple - to trade in exceeding of the volatility limit and there are two rules of the method:
1. To trade by opposite way from a signal of the Volatility Value Indicator (VVI) for next bar; to open a position on the opening of next bar and compulsoryly to close a position on the closing of the bar if a takeprofit or a stoploss are not triggered;
2. In simple case scenario we have to skip all consecutive signals after a triggered stoploss.That situation corresponds to a powerful attempt to form a new trend and we have to wait for its weakening. *In advanced case scenario we have to trade if next bar colour is Magenta only (we have to skip all consecutive blue signals after a triggered stoploss).Blue signals appear as a rule on the trend birth but Magenta ones do on the spent trend.
I attached a picture to illustrate it.
Attached Image
And I should especially note that we must to calculate H12 bars from the end of a day only (without a displacement).
