Hi Rooi
I notice your charts are 5M, I've had a long look at a number of 1H charts and this indicator looks useful on those too (commodities and indices as well as the forex majors). I like the idea of a moving line in the sand, long above and short below.
As with all trending methods the choppy periods can be messy, but the trends more than make up for this as long as you can accept the whipsaw losses and be patient enough to wait for the trends to form.
The whipsaw losses obviously tend to be larger on the 1H timeframe compared to the 5M, but when the trends form positions can often be held open for 3-5 days.
More backtesting to be done over the weekend but this looks promising thank you.
Andy
I notice your charts are 5M, I've had a long look at a number of 1H charts and this indicator looks useful on those too (commodities and indices as well as the forex majors). I like the idea of a moving line in the sand, long above and short below.
As with all trending methods the choppy periods can be messy, but the trends more than make up for this as long as you can accept the whipsaw losses and be patient enough to wait for the trends to form.
The whipsaw losses obviously tend to be larger on the 1H timeframe compared to the 5M, but when the trends form positions can often be held open for 3-5 days.
More backtesting to be done over the weekend but this looks promising thank you.
Andy