Red on Red..... Blue on Blue..... I try to get the 50 EMA, the 14 HMA and the ECO bars to all be the same color..... At the same time noting any trendline breaks or the break of a swing high/low. Can you see the trades? Not all of these were at very good times of day to trade but.... I hope you get the idea.
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Hey all...... Shodson just posted the link to Toby Crabel's "Open Range Breakout" on the 10 tick open range play thread. This is some of the best information on trading I've ever seen. I my opinion.... if you are not familiar with this information.... you should be. It will defintely make you a better trader !!!!!
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Here are a few templates that essentially show the same thing. The "all you need ES" does not use the EMA Colors indicator as it does not perform that well with a 4 range bar chart. Let me know if these came through OK.
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It's Michael Sullivan with "Trade the System" ( a sister site to "Trade the Markets") talking about the Slingshot indicator and how to use it. I had seen some discussion previously talking about the shaded area being a "no trade zone"..... I do not believe that this is the intended use for this indicator..... the shaded area is supposed to be an area to initiate positions (pullbacks) this is suppose to keep traders on the right side of the trend and prevent over trading.
When I looked at the Slingshot indicator and saw that it was just two moving averages I applied a moving average cross methodology. One particuliar methodology that I like calls for trend identification as a cross of the 20 and 50 moving averages, so.....these are the moving averages I chose. You can do a Goggle search on "trading with moving averages" and find some very good basic info on moving average trading. This may have some influence on the moving averages that you choose for the slingshot.
So..... ultimately my current methodology was developed in part by playing with the slingshot indicator. After a while I just decided I didn't actually need the indicator as it was just two moving averages. But it's a nice visual and..... what ever works is good !!
I'll post a chart showing how I would use the slingshot. Jeff
That was interesting Jeff, thanks for the link to the video. I love videos like that. I don't buy the products (usually!) but I like to see how someone could use it. It often gives me ideas like you got to just use the moving averages yourself.
For your example, just about any indicator would have worked for Friday's morning session assuming you knew to be short. You could just pick a random bar to go short and you'd be profitable.
I will install it and see how it would have worked over the past 2 weeks. I'm curious.
What's interesting is every time there is an indicator and I write a backtest strategy for it, it never tests positive. Goes to show that it's not the indicator but how you use it and combine it into your own style. I've tested hundreds and never found an indicator that can work mechanically.