{quote} It looks perfect but only problem is it is using the ATR. The one I have uses the following indicator. {file} If you could use this instead of the ordinary ATR, it will be perfect. The regular ATR gives too inflated figures for random walk to be used correctly.... Thanks once again and waiting for the updated one. Good Luck...
For trading try the following: If you believe that the market is short than enter sell limit at Fib 78.4 level, take profit at Fib 0 (D1 Sup 0). Stop Loss few pips above Fib 100 (D1 Res 0). If you believe that the market is long than enter buy limit at Fib 23.6 level and take profit at Fib 100 (D1 Res 0). Stop Loss few pips below Fib 0 ( D1 Sup 0). This is sort of a set and forget trading style. You will be surprised when you see the success rate... Good hunting and Good luck......
Here is a brief explanation of how the levels are calculated: Using the absolute value of close differences of past 5 minute bars we find the volatility. We know from statistical rules that Sqrt(time) * volatility = standard deviation Since we have 288 of 5 minute bars per day, we calculate the statistical boundaries of the day (the levels). Sqrt(288) * Volatility * 1.00 Sqrt(288) * Volatility * 1.645 Sqrt(288) * Volatility * 1.96 Sqrt(288) * Volatility * 2.576 We add and subtract these calculated values from the daily open.. The last multipliers...
{quote} Hi Gold, I'm getting closer, thanks for explanation. Last question: in your calculation sqrt(288) * Volatility * zScores.................with Volatility you mean ATR(288)Close.........so correct calculation is Daily open +(-) (sqrt(288) * ATR(288)Close *ZScores) ?!
