Simple's Green Room

[pennies2007]

Morning SG. I've been playing with the setup a lot in the strat tester and I've decided to go back and add candles just to have a reference but I didn't want an intrusive candle. I needed to be able to fully see the smoothed HA candles. So I loaded up the bar candles...standard green for up and red for down. I know there are a lot of folks who can't read those but I can read them just fine since I trained on them a long time ago. And they're very unobtrusive.

I remember you talking about the line chart a while back...very good observation. It sure does take away the tendency to jump around and make hasty decisions like we tend to do with just candles on the screen.

Here's a shot of an AU 15 Minute with everything in place. I did get rid of the M-candles for now just to keep things clean.

One observation I've noted on the HA candles is how they react themselves to zones and the guppy. Typically during a trend, the HA candles with retrace back to the guppy and while price action may move back on the other side of the guppy, it's rare for the smoothed HA candles to do the same unless it's setting up for a larger trend change. Same with the zones. The price action may penetrate further into the zone than just the edge but the smoothed HA candles seldom venture into the zone...they'll scrap along the edge and then the larger trend will kick back in again.

The first chart is with my price action bar candles in place...the 2nd chart shows just the HA candles with rectangles around the areas where the HA candles performed perfectly at the zones. I may still get rid of the candles altogether...haven't decided yet. The smoothed HA candles really do tell a better tale of how price action is likely to react.