josi wrote: Tue Jan 04, 2022 7:55 pm I already wrote this to MrTools (about a similar indicator), so don't be angry if I repeat myself here.
It is because I like this indicator but I don't think the signals are very good:
This is meant as a suggestion (and not at all any kind of criticism):
If one takes into account how this indicator works (2 lines crossing and recrossing, tendentially going in opposite directions), a signal whenever the lines cross is
a) almost always too late (because half the move may already be over when lines cross)
b) the bigger the last move, the longer the distance to the next possible cross
The same problem arises if you take zero-cross for signals.
Logically speaking (ideally?) the best point for such an indicator to give a signal is when it has reached extremes (with both lines) and moves away from these extremes.
So one could either think about
a) Stoch-style-level-signals or
b) slope-change-signals (but these would only work with considerable smoothing of the lines).
I think if it could be done in such a way the indicator signals might turn out to be extremely good.