Introduce gravity trading method using regression properties.

2022년 12월 21일

Hello, I'm ilgaemi.

The trading technique I'm going to introduce this time is trading technique using the regression properties of the candle as the title suggests.

I think those of you who use indicators such as ma and bolinger band ichimoku have a good idea
The trading technique I will introduce this time is trading technique using the cloud indicator that I made myself.

If you look at the picture first, you can see that there is a white cloud in the center and purple and navy clouds in the top and bottom
For this indicator, it is an indicator that combines several ema to post-process it several times, draws a white cloud in the center, and then draws a cloud up and down according to the interval specified by the user.

So as we get to the outside of the cloud, we see a pattern of trying to get back to the white cloud in the center rather than going up further, and using this regression property of the candle is the key to the gravity trading technique.

At this time, there is a part that must be considered, and it is better to aim for the point when the volume has calmed down after the expansion rather than the point when the volume has been expanded.

Sometimes it breaks through the outermost cloud with an explosive transaction volume that overwhelmingly exceeds the previous volumes, and in this case, it is difficult to respond to position entry and loss
It is often very large compared to other cases.

Therefore, if you enter the position when the volume has calmed down and the candle is still on the outside of the cloud, you can expect a satisfactory take profile compared to the risk.

In the case of this trading technique, even if it is not the indicator I am using, it can be applied to other indicators, so please refer to it!