Replies to post #16526 on The TradingEdge

[kiy]

Day traders and swing trades...

BT thanks for the comments earlier; higher powers are letting me post more often...
Ziko can explain chart when here again if I miss or over state something.
If we can fine tune an indicator on the daily chart...we can step down to a 30/60 minute chart with the same indicator and front run what is going to happen on the daily...and make the assumption that the signal can be acted on="the signal is there") so when he said the signal is there he's suggesting it has triggered or is about to be triggered... and it is frequently happening at the one deviation band.
What we have found is that there are "frequent triggers" at the "one standard deviation" Band of the Bollinger bands (normal Bollinger is 2 standard deviations)...aka...volatility bands...
The daily chart he is focused on the RSI settings and on the moving averages of that indicator...= a technical indicator triggering before(or at same time)as the "early price" moving averages"...our focus is 3...5...10 moving averages... and then the ultimate "trigger"... signal is there...indicator= is price itself...price has to move below the 3 moving average to turn it the other direction...3average becomes a trigger for other averages as crosses...triggering as it crosses the 5 and 10 averages...it would be nice to know where these triggers happen as we come out of overbought in today's case...and to see a certain technical indicator working right along with it...
We will walk through the signals in real time...for now I'll post a 60minute chart and the daily chart and can see what is happening on the 60minute chart today and past few days...maybe setting up in front of the daily chart...???
...bottom line is that over weekend or over night = news may/will void these set ups but intraday indicators reset fast...so we are going to understand their characteristics...
Hope this helps...give it a few real time looks and you will see it...I already know you know your way around charts...
Enjoy
60 minute chart with CCI as indicator

Daily with RSI

[ziko]

Hi Blacktruck

Sorry could not reply to you earlier. The signal is generated when price goes back into the one deviation bollinger bands. Assume you are using a CCI 10 as indicator, you can see this better on the price chart by putting a BB (10,1) around price. and it is much better than the standard CCI 10 cause the signal lines (on CCI 10) are horizontal, while the signal lines of the 10,1 bands are either in an uptrend, sideways or downtrend. When they contract/expand this has implications on projecting volatility as well - but that is another story, in a way I find them more useful than VIX which is late more often than not.

More to come later.

Enjoy