Trade Using the Arrow Dot and VWAP for Directional Intra-Day Trading Charts:
Understand the Tide (Trend):
Tide: The overall market direction or trend can be thought of as the tide moving in (bullish) or out (bearish).
Rising Tide (Bullish): When the price consistently stays above the VWAP, it's like the tide is coming in, pushing the water (price) higher.
Falling Tide (Bearish): If the price is below the VWAP, it's akin to the tide going out, pulling the water (price) lower.
Observe the Waves (Pink/Blue Dots then Red/Green Smaller Dots):
Waves: Within the tide's movement, waves represent the smaller price movements:
Pink/Blue Dots are like the larger waves you can see from afar, indicating significant movements within the trend. They help you understand where to enter the market in alignment with the tide.
Red/Green Smaller Dots are like the ripples or smaller waves on the surface, offering more precise entry or exit points:
Red Dots: Small bearish ripples within a bullish tide, ideal for fine-tuning selling or taking profits.
Green Dots: Small bullish ripples within a bearish tide, perfect for pinpointing buying opportunities or adding to longs.
Entry Points:
Surfing the Waves: Use the Pink/Blue Dots to catch the larger waves for entry into the market, following the direction of the tide:
In a rising tide, look for Green dots to ride the upward wave.
In a falling tide, Red dots signal where to catch the downward wave.
Exit Strategy:
Navigating the Currents:
The appearance of an Arrow Dot can be likened to a change in the current's direction, indicating when to exit your trade. If an Arrow Dot appears:
During a rising tide, it might suggest the tide is about to turn or pause, time to exit longs.
During a falling tide, it could mean the tide might start to come back in, signaling to close shorts.
Combining with Other Indicators:
Just as a sailor uses multiple cues to navigate, use the VWAP alongside these wave indicators for a more robust strategy.
If a Green dot appears near VWAP in a rising tide, it's like finding the perfect wave to surf higher.
This "Tide and Wave" analogy emphasizes the natural, rhythmic movement of the market, providing a visual and intuitive way to understand and implement your trading strategy within the framework of intra-day trading charts. We visually seek order out of chaos and in doing so we simplify our trading experience : This is the way.
This Trend that we try to circumnavigate represents the gravitational pull of the market. The Trend is the True Force behind Price and Momentum, it carries EVERYTHING in its wake.
Remember, these are signals within the noise of the market. They should be used in the context of your overall trading strategy, risk management, and market analysis. Over-reliance on any single indicator or pattern can lead to misinterpretation of market movements.
Hope this helps in refining your observation and trading strategy using these wave indicators!
IMPORTANT NOTE : Trading should be FUN!
Best,
Xard777 (I may not be a greedy Bar Steward, but I am a happy one)
PS This setup will no doubt be posted sometime next week after some more testing/tweaks.
Attachments forums
Re: XARD - Simple Trend Following Trading System
xard777, Mon Feb 17, 2025 12:44 pm