@GFIs1 By far this method is the simplest Hi and Low method I found after my research but it is too bad I cannot apply it for US markets...I know you didn't tested this method for US markets but is it possible for you to change some settings and see the feasibility of this method to S&P index? The reason I am coming back to this method is because of it's simplicity and it fits my style of trading i.e swing trading...Thanks for your help.
You are right - my finetuned signal markers for the Dax do NOT work on the ES unfortunately.
I was looking into some bigger swings and found a solution for trending days to get the most
out of a trade without to be in a hurry...
In the following chart there is the cloud / Kumo (red and blue for short/long) as well as the
green VWAP band and the violet VWAP itself. The band is starting on every session new!
Short signal (to get out of a long and take a short immediately):
VWAP band is touching the Kumo (in the chart the left example) AND price is lower than the
VWAP line - then price will go further down.
Long signal (to get out of a short and take a long)
VWAP band (green) is touching the Kumo (here from bottom) AND price is higher than the
VWAP line - then price should cross the bullish Kumo and go higher.
In the example the long signal is still active and a turning point not in the picture.
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For nontrending days the signal does not bring much points nor does it bring a big drawdown.
PS: all settings are the same as discussed in previous posts in this thread
The following 3 users say Thank You to GFIs1 for this post:
Today the above seen short signal got after another bullish move a second short signal which
confirmed the first one: that happened today @ 8012 14:41h (CET).
Price came down immediately again - underneath first signal - looking forward to see the short
going on now...
The following user says Thank You to GFIs1 for this post:
@GFIs1 Thanks once again for your valuable time and effort. This looks promising but this wild swings and divergences in ES is still kind of worrying me. I will try this method with different parameters in VWAP bands and time interval. Do you have a way to back test it in your platform? I don't have a way or I don't know a way in TOS platform to back test this.
The mentioned signals are not coded until now - it is more a visual test if a signal is valid or not.
Therefore a backtest on my platform (even there are possibilities for backtests) is not easily doable.
As I am more testing forward than backward I suggest to test out some of the input in the next
trading days/weeks and months on ES or other instruments.
With sharpening your eye for possible obstacles it might give you even more experience to "see"
the real turning points.
As mentioned I had to go over the rules and refining plus tuning the system here.
With input of @bmtrading9 to test the system for ES I have seen that for breakouts
on the DAX I had to find a additional confirming of a upcoming signal in the short
time frame. So I added a confirmation need rule on the 1h which works the same
as the 3min. rule.
As result - all short signals on the Dax as on the ES in this week were not valid.
(Here the short trades mentioned in the posts before have triggered stop loss markers).
For the bigger picture we are still on the long leg(s) and some higher price levels are
round the corner - for the Dax a new High (22 points above yesterday's high) should
be seen in the next days.
As for my rule set - I will look back into similar price patterns to see if that double
confirmation brings good results. Hope to see a more stable "Turning Point System"
with this extension.