This indicator and strategy is a technical indicator used to analyze and predict changes in stock trends and price patterns in a traded asset.
< Pros and Cons >
It helps determine the trend direction/strength and optimal entry points.
This indicator may be a little easier to work with.
Just as any other trend-following indicator, this strategy might provide a lot of false signals during the flat market.
For optimal results, this indicator can be accompanied with other indicators, namely ( ) and (ATR) and Moving Average(MA). The is ahead of the curve and can hint into an upcoming trend reversal. The ATR is capable of determining the of the market, which is especially useful since the ATR indicator doesn’t work on the flat market.
It is a lagging indicator. It helps you by showing the longer term trend but may keep you from faster paced swing trades. In my personal opinion, this strategy is optimal to 12H time frames.
★ Remember that no indicator is capable of providing 100% accurate signals. Follow basic risk management and capital allocation rules.