EDIT EDIT EDIT thanks for trying to resolve this issue I have which deals with trading rather than technical. I am I think one of the very veryfew who exactly understand what you are doing:
1. Your definition of only taking signals from the three lines is very understood by me, it says:
a. buy when out of overbought=only buy low, buy the dips
b. sell when out of oversold =only sell high, sell the peaks
c. act a middle line=only take a retest either buying on a rebound from high or selling a rebound from low
d. Ahh...but a,b,c are qualified===Make sure you are inline with daily all the time= a, b, c depend and only depend on daily, all of these signals should be taken only in line with the daily direction=structure, if daily is in an uptrending channel or trendline or trending up, only take buy signal out of overbought intraday.and the reverse for the shorts. so abc above re only depending on the market structure.
e. rebound from centerline should be viewed with daily structure, if CCI or stochastics are at mid line coming from overbought and daily bias or signal is up,= take it on the long side=illogical or inconsistent to short it.
f. Do not buy in the air, either at an overbought level, oversold level or in the middle (if you have to) but not in the air...essence of risk management=do not buy in the middle of an upside or sell in the middle of the downside because you are not maximizing your wins andminimising your risk and it is improper ...lol
f. when you say "Don't do what I do"=because you take every signal , every cycle, which confuses many, but that is your style because you rather slowly accumulate, and you hedge.
g. if you want to take a counter trend trade, i.e., if a,b,c, are against the daily, go ahead, can be done, but be aware you are going after nickles and dimes, and your are not minimizing your risk
h. only focus on two indicators and a third of your choice, = sound trading cause you go insane with 12 indicators.
It is very clear to me, I hope more people start to understand it this way
You know I am thinking outloud a solution to my issue is to come up with a line or a price below which in case of short there should not happen any reversals....demarcation line if you will, thisis why I have started marking the cycles of stochastics with horizontal lines...do you think coming up with a line or price level is the only way to overcone this fear of a reversal happening any moment? I just want to focus on one or two indicators (stochastics primarily and CCI) and the rest are just a background for reference checks like ULT.
ENJOY