New Year - new GFIs1 approach
*** IMPORTANT NOTE to ALL readers first:
This thread has NO indication about entry or exit nor does it provide ANY signals! (live or not)
but is for testing reasons and discussing results ***
Goal: Finding an indicator that shows the
turning point within a chart.
This is not that easy as it looks. Taking a chart and looking back - everything seems obvious.
Finding a signal that indicates where the price is really turning would be a nice help.
With that signal we could take a short at *around* the highest point and wait until the low
signal comes up to sell the short and to take a long instead. And vice versa.
Have tested in the last two years a signal on the Dax which seems to work.
Criteria:
a) Working with price on a
VWAP band which starts every trading day new at 0 on full futures trading hours.
b) Looking at occurences when price is crossing the VWAP band boundaries.
c) Checking with the underlying
Ichimoku cloud if the signal is valid or not.
d) Validation for a signal needs a move of more than 1% change since last signal.
If a valid signal is created - the trade will be closed / and a new one in the opposite direction will start.
This wil happen on the next bar after the signal (within minutes) - so the absolute maximum might not be reached.
A trade might run several days - so the margin levels of
overnight and over the weekend need to be checked with
the broker.
Looking into some charts with next posts.
GFIs1