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Hi
attached are screenshots in the form of an indicator for a strategy idea that I have been playing with.
I like it on the 2-minute chart with tick-by-tick indicator updates, and intrabar order generation disabled. On the 2-3 minute charts I am then able to use smaller stop-losses as there is less price action per bar.
With as long a period as 700, if you start to use timeframes above 2-3 minutes, trades, and time between trades, perhaps lasts too long for intraday trading, with days when no trades are signalled.
It is a CCI700, with the scaling fixed at -245 to 245. It buy when the price crosses above 0, and sellshort when the price crosses below 0. With these settings, about 6 trades are produced on average per 24-hours, = 2 trades per 8 hour trading session on EURUSD - GBPUSD.
With such a long length as 700, fewer trades are signalled - which suits my approach - fewer trades with more accurate signals.
After each signal at least 20+ pips are usually there for the taking within a short space of time, besides following the flat loss-making - breakeven trade signals.
Hi
As mentioned, on a 2-min EURUSD chart over one month, 111 of 143 swings above and below 0 result in false swings that lead to small losses usually. However, of these 111, 68 last for 6 two minute bars or less. Therefore one possible solution to avoiding the flat-lining crosses would be not to enter until the 7th bar of the CCI700 swing above or below 0.........
guess the premise is as the name suggests 'Mean Reversion' - I've carried out a bit of research into this and it does look plausible.
Trade the Trend
or
Trade the Fade