The majority of traders are always looking for the ‘perfect’ moving average combination or the ‘best’ and ‘most advanced’ new indicator. But the problem is these are usually either lagging indicators or provide so many ‘false’ signals that you don’t know when or how to actually use it. Ultimately, there is no better indicator than pure price action. As a matter of fact, all indicators are actually doing exactly the same thing, and that is interpreting price action in some way or another.
And although this approach has its merits, nothing will help keep you with the trend better than simple pure ‘unadulterated’ price action. And that is exactly what this indicator does very well.
The indicator is applied directly to the chart and will draw two parallel trendlines, the first would be that of the primary trend in either green (bullish) or red (bearish) and the second is a neutral line in blue which will occasionally either turn green or red to indicate ‘counter trend’ price action which typically appear during a pullback. The indicator also features built-in signals that can indicate pullbacks as well as trend continuation candles. Another feature is the price structure line which shows the level of the last swing high/low (which some traders like to use for stops)
The indicator has 6 customizable parameters:
- Simple moving average period used to ‘calibrate’ the primary trend.
- Option to enable or disable additional trend confirmation (slower to respond to trend changes, but can indicate much longer trends)
- Option to enable or disable additional price structure confirmation (better defined fractals)
- Tolerance factor, controlling price action sensitivity (Default: 1 point)
- Option to enable or disable the Price Structure Line showing the last swing high and low
- Option to enable or disable the Pullback and Continuation Signals
This indicator can also be used as a companion to my very powerful RSI Power Signal v3 indicator to even better time entries and exits. Combined these two specialized indicators gives you the best of both price action and underlying market strength and momentum, giving you a trading edge like never before.
Also for those wondering, I have also created a fully automated strategy based on this indicator with initial results looking very promising. The strategy is currently being tested in a live environment and would be made available in due course. Here is a small teaser:
All indicators includes free access to my Ultimate and Complete Course on High-Probability Trading (follow link for course content). You will find the link to the course content in the purchase note upon completion of payment.
I am a professional ProRealTime developer with 4+ years experience in creating and coding ProRealTime strategies.
You can view my PRC profile here: https://www.prorealcode.com/user/juanj/