DislikedThe problem is, while back testing my strategy, it gives good result. However, the moment i take the real trade, most of the time it goes reverse.Ignored
Now, if you compare as well with contrarian indicators like the slow stochastics, these contrarian indicators will give you signals that are way too fast. So, either indicators give you a signal that is way too fast or way too slow.
Like I said, trendlines can reduce the negative impact of both indicators at the same time. But, you do encounter different kinds of challenges like when prices go flat. I thought of different solutions like using wider trendlines. Also, when prices were moving up slowly, TheLastCoke posted a chart of fib levels in action. He posts very nice charts with trendlines adn fib levels etc. You'll probably learn a lot from looking at his charts. He has a thread here called "backing trades with charts" or something like that.
