I've been working out how to deal with the TVI showing trade setups when changing color and direction but having not actually crossed the zero line.
My solution has been to combine the TVI at two settings. 8_8_5 and 5_5_5.
The charts attached should be self explanatory but feel free to ask for clarification. You can see that this setup applies to most TF's with proper MM/RR. This setup can be applied to any pair.
Rules for conservative trade entry are as stated by Lou.
Rules for aggressive trade entry are very well described by Forexwolf. (I look at the H1 and H4 charts to see the overall trend, and the only effect that might have on my trade is weather I go for 10-15 pips (counter trend) or 20-30 pips (with the trend).
In general when I see price close above or below ALF, and there are no big numbers or strong S&R I will enter the trade. Something else I have noticed that happens quite frequently is price will breakout of the ALF, then pullback and touch the ALF then take off in the direction of the original breakout. This can be a strong indicator.)
Using the two different TVI settings together helps to identify the pull back and limit risk at entry if PA does go against your position.
When the TVI's seperate can help identify a pull back and then continuation.
On another note, I have also been applying divergence studies/setups using the TVI. Seems to be dead on when at extremes of Over Bought/Over Sold.
Hope some of this will help with trades for all.
Thanks again, Lou, for bringing these two indicators to our attention.
Cliff
My solution has been to combine the TVI at two settings. 8_8_5 and 5_5_5.
The charts attached should be self explanatory but feel free to ask for clarification. You can see that this setup applies to most TF's with proper MM/RR. This setup can be applied to any pair.
Rules for conservative trade entry are as stated by Lou.
Rules for aggressive trade entry are very well described by Forexwolf. (I look at the H1 and H4 charts to see the overall trend, and the only effect that might have on my trade is weather I go for 10-15 pips (counter trend) or 20-30 pips (with the trend).
In general when I see price close above or below ALF, and there are no big numbers or strong S&R I will enter the trade. Something else I have noticed that happens quite frequently is price will breakout of the ALF, then pullback and touch the ALF then take off in the direction of the original breakout. This can be a strong indicator.)
Using the two different TVI settings together helps to identify the pull back and limit risk at entry if PA does go against your position.
When the TVI's seperate can help identify a pull back and then continuation.
On another note, I have also been applying divergence studies/setups using the TVI. Seems to be dead on when at extremes of Over Bought/Over Sold.
Hope some of this will help with trades for all.
Thanks again, Lou, for bringing these two indicators to our attention.
Cliff
Attached Image(s) (click to enlarge)
I get exercise just pushing my luck
