Thanks, Robdee. How do you calculate retrace labels?
- #688
- Mar 28, 2009 2:09am Mar 28, 2009 2:09am
The most recent update of vForceEdge has been showing good quality signals. In fact the signal quality has improved so much that I have been able to introduce a second method for confirming signals.
This new method is called ConfirmByClose meaning a candle that closes above or below the signal candle is also considered a confirmation. This does not replace the original method which is to wait for price to exceed the signal candle by 10 pips. Often the confirmation candle meets both requirements, that is it exceeds the signal candle by 10 pips and also closes above/below it. Meeting both requirements is great but there are also winning signals that only need to be confirmed by a close and they are 'good to go'.
Two recent signals are perfect examples of how ConfirmByClose offers entries that are missed by the original confirmation rules alone. See the chart below.
ConfirmByClose will be available in the next release of vForceEdge.
The current release of vForceEdge is post 663
http://www.forexfactory.com/showpost...&postcount=663
This new method is called ConfirmByClose meaning a candle that closes above or below the signal candle is also considered a confirmation. This does not replace the original method which is to wait for price to exceed the signal candle by 10 pips. Often the confirmation candle meets both requirements, that is it exceeds the signal candle by 10 pips and also closes above/below it. Meeting both requirements is great but there are also winning signals that only need to be confirmed by a close and they are 'good to go'.
Two recent signals are perfect examples of how ConfirmByClose offers entries that are missed by the original confirmation rules alone. See the chart below.
ConfirmByClose will be available in the next release of vForceEdge.
The current release of vForceEdge is post 663
http://www.forexfactory.com/showpost...&postcount=663
- #697
- Mar 30, 2009 3:38am Mar 30, 2009 3:38am
...the original method which is to wait for price to exceed the signal candle by 10 pips. Often the confirmation candle meets both requirements, that is it exceeds the signal candle by 10 pips and also closes above/below it...
Some traders want to see only the lowest risk (highest probability) setups, in that case they will set ConfirmByClose = True and ConfirmByPips = False.
I have illustrated this in the charts below.
ConfirmByClose and ConfirmByPips will be available in the next release of vForceEdge.
- #698
- Edited 4:53am Mar 30, 2009 4:27am | Edited 4:53am
Studying price action in detail using Force5 and vForce has given me more understanding of the 'attack-counterattack' character of forex markets. This creates a problem for technical analysis.
For example, just as soon as technical analysis shows enough bullish momentum to print a buy signal, the bears attack selling into the new higher prices, if this attack is strong enough the 'technical buy' fails making it look like the buy signal was an error. It was not an error, it just got attacked as is the true nature of the market.
This bull-bear-battle after a technical trigger occurs quite frequently. The 'trick' here is to wait for one side to win the battle.
As I create vForceEdge I have kept this market behaviour in mind. I want a system that not only prints a directional signal, but also shows when those signals have been attacked and counter-attacked.
My charts below show examples of VFE reversals
VFE reversals are a much better way to show true market behaviour than other systems that just print a one direction signal. RD
For example, just as soon as technical analysis shows enough bullish momentum to print a buy signal, the bears attack selling into the new higher prices, if this attack is strong enough the 'technical buy' fails making it look like the buy signal was an error. It was not an error, it just got attacked as is the true nature of the market.
This bull-bear-battle after a technical trigger occurs quite frequently. The 'trick' here is to wait for one side to win the battle.
As I create vForceEdge I have kept this market behaviour in mind. I want a system that not only prints a directional signal, but also shows when those signals have been attacked and counter-attacked.
My charts below show examples of VFE reversals
VFE reversals are a much better way to show true market behaviour than other systems that just print a one direction signal. RD