DislikedThanks for starting this thread. Here is something I was working on before getting locked out. I have been working on 2 strategies that came from different ideas that were presented which I think show some promise: Strategy 1 Stoch goes outside band EMA goes outside same band ZZ Top or Bottom forms Enter trade SL = 10 pips TP is middle band Strategy 2 Stoch goes outside band EMA goes outside same band ZZ Top or Bottom forms Price crosses mid band enter trade SL is opposite band (top band if a short, lower band if a long) TP is next ZZ top or bottom...Ignored
I was thinking of strategy 1 too. Looks full of promisses. Use the mean and extremum points.
Then i go back to the definition of the bollinger bands and i swap my interpretation : IF the price makes almost tops and bottoms outside the bollinger bands in accordance with the deviation parameter, THIS IS BECAUSE the price now is almost a gaussian function around its moving average mean, SO THAT it i use the bollinger bands, it seems we are trading the NOISE of the market.
So, the next question was : is it good to trade the "noise" or to remove it ?
When we have dissimilarity, this "noise" is completly distorded and we don't have alternating high and lows anymore. Fractals indicator shows mutiple tops or bottoms, ZigZag repaints its extremum, stock makes multiple '100s' or '0s'.
Enter Signature