How good is Dynamic S/R?

1
Moving averages can be used in different manners. As slope, as crossing signal with another MA and/or as dynamic S/R. The latter may be much less known, but as static S/R it is a pretty powerful PA analysis tool as well. It's a indicator, that's the good news - we don't need to draw them manually. But low-pass-filters EMA or SMA aren't use here in a indi-typical way, but as boundaries where the price bounces back, e.g. back in the trend direction. EMA weights newer samples or bars much more than older ones. That's why it is use intraday, where the market reacts more to PA. SMA doesn't weight the bars and is mostly favored by daytraders. On these tfs the fundamental analysis has a big influence.
   
 
Such as static S/R and TLs, EMA or SMA doesn't serve as perfect boundaries. They must be seen as small bands. Popular periods are 5, 12, 21, 50, 100, 200. You can choose other periods as well. The period depends a bit what you want. Trend follower would take bigger periods, while scalper choose smaller numbers. Every pair and tf have to be fine-tuned to perform best. One disadvantage it has: it is not usable in sideway markets.

Personally, I use EMAs on all tfs, it works. On the other hand, SMA in intraday don't work for me at all. 

Have fun and maybe dynamic S/R find a way also in your entry or exit strategies.
Attachments
These users thanked the author Krelian99 for the post:
GoldenFibo




Re: How good is Dynamic S/R?

6
sal wrote: Sun Sep 24, 2017 12:39 am
Friends,
please post the indicator (s) link if avaialble in another topic or indicator. :)
Krelian99,
whats your adivse for binary traders for using this stratgey!!
These are only EMAs: 7,14,50 and 200. Good for Swing- and Trend-following strategies. For BO it can maybe help to wait for little sideways and ride the mini swings up.

Re: How good is Dynamic S/R?

7
Krelian99 wrote: Sun Sep 24, 2017 1:28 am

These are only EMAs: 7,14,50 and 200. Good for Swing- and Trend-following strategies. For BO it can maybe help to wait for little sideways and ride the mini swings up.

hi
could possible to add EMA BAND indicator link or indicator :)
i did some method as per your given EMA's and S/R dynamic breakout method in 1m tf - 5MIN Expiry. needs test when market live. :)
Attachments
"There is NO GOD higher than TRUTH" - Mahatma Gandhi


Who is online

Users browsing this forum: No registered users and 18 guests