Testing and examples
I have attached 4 illustrations of the US30 1m chart - and to show how the strategy would work in the most choppy, sideways moving charts I have chosen this to illustrate how well the signal works even under these really bad conditions.
The first chart if the overview to show how bad the chart was.
The 2nd chart is the closer look at the signal area.
The 3rd and 4th charts are how the individual trades would have been selected using my under the chart indicators.
First two charts show the overview whilst charts 3 and 4 show the individual signals and trades.
In the trend situations it is far easier to use as the ema's indicate when a strong trend is in progress.
All trades have the starting point of the 15m NextMove vertical on screen. As it could change - being a 15m indicator the ONLY trades that are taken MUST be confirmed by the under chart indicators - or your own indicators.
3rd chart
1st signal buy - stochs coming out of o/s area and rsx postive. Profit
2nd signal sell - stochs coming out of o/b area and rsx negative. Break even.
3rd signal buy - no trade as stochs already o/b and rsx over 0.5 (white area). NO TRADE
4th signal sell - stochs crossed down and rsx negative. Profit
5th signal buy - stochs crossed down and rsx negative. NO TRADE
6th signal sell - stochs crossed down (and in divergence) and rsx negative and in divergence. Profit
7th signal buy - DELAYED entry as stochs close to o/b area and rsx was descending and entry when it turned positive and the ema's opened to show mini trend. Profit
8th signal sell - no trade as stochs already o/s and rsx under -0.5 (white area). NO TRADE
9th signal buy - stochs crossed up and rsx positive but importantly both were in divergence. Profit
10th signal sell - stochs crossed down out of o/b area and rsx negative having been over 0.75 black area. Profit
11th signal buy - no trade as both stochs and rsx are in their o/b areas. NO TRADE
12th signal sell - delayed entry until stochs crossed down and rsx negative. Profit
13th signal buy - delayed entry until stochs crossed up out of o/s area and rsx positive. Profit
14th signal sell - delayed entry until stochs crossed down and rsx negative. Small loss
15th signal buy - stochs crossed up and rsx positive. Profit
I believe that any scalper could make this work successfully and possibly it could be futher adapted for higher frame usage but I have not looked at that.
I will be very busy for the next two weeks with family matters so if there are any questions do not clog up this thread and sent me a PM and I will get around to it when I return.
TEAMTRADER