Looking for a simple filter

Hello

I use a hammer or shooting star on scale between 3 to 12 minutes to enter in a reverse trend trade. Lots of these signals fail and I'm looking for a simple filter.

My idea is a hammer or a shooting star may be the result of the end an existing trend. If so, the trend should reverse. Is true, but not for the majority.

Maybe, if i could found a filter, i could reduce the number of false entry.

MT

Try using a higher time frame.

Only buy in an uptrend, only short in a downtrend. Works wonders.

20 rsi
14 stoch
or
par on the 15 min time frame
are the 3 best I know

cheers

teb

If you want to use an indicator, I'd suggest ADX or better yet ... good ole "patience".

Actually if you just run a linear regression line through the close prices you can get a pretty reliable trend indication. If the slope is positive it's an uptrend and if it's negative it's a downtrend.

I use this as a filter now in some of my systems and it's quite reliable.

Simple filter:

Near the BBand or above it. My friend trades this actively and makes good money doing it. He looks for price uncertainty at areas of extension/exhaustion.