As you already know, excellent system! In reviewing example trades over the past month on 4H and 1H I've notes a few things:
- The pair that reaches a lower high or a higher low, the "weak" pair, often goes farther in price like the other pair but has begun to snap back by the time the bar closes. Bill's using of Typical price puts more weight on the final close price so the 1 SMA looks weaker but can be actually moving more and faster. But the 1 SMA makes it much easier to see!
- I'm seeing that a lot of the "weak" pairs are moving past fib lines then snapping back to close right on a fib, further evidence of resistance and imminent reversal.
- I zoomed in on 5M and found very trendy, very easy-to-follow price action without spiky uncertainty during the 1-4 hours after the signal. Excellent, excellent trading conditions with a strong bias toward the eventual take profit targets based on 1H or 4H. Just only maybe take trades in the direction of the trend. And quite a few times the very first 5M bar right after the 1H closed was a trade signal with my other system and the price took off from there.
I'm very excited to use this system like a weather predictor for good/bad conditions to know good times to trade, making long-term trades according to the rules and short-term trades during the same conditions.
