garyfritz wrote:...Unfortunately if the market KEEPS trending up, the slope eventually tops out and begins to fall. So even though the market is still moving up, the slope direction changes and provides a false trigger.
How to distinguish the two?
Slope basically measures the amount / speed the market has moved recently. If it's been rising, the slope is strongly positive. As soon as the market turns, the slope is still positive but starts to go down. But even if the market is still moving up (say slope is 1.0), if the market move slowed so the slope dropped from 1.2 to 1.0, that's still a change in slope direction. The slope indicator has "saturated" so slope direction is no longer a reliable indicator.
Maybe your combination of D1/H4/H1 slope will extract "bites" from the market move that go predictably in your direction. I'll be interested to hear how you do.
I've been toying with an idea for a slope-like indicator that doesn't saturate. I'll let you know if I come up with anything useful.
Garyfritz, thanks for reading and answering - unfortunately I have quite a heavy workload as a physician and do my trading at strange hours and without the discipline it would need. Actually the only way I make money is by having the beast do its work on some selected pairs and small lotsize. My manual trades mess up the beast's quite nice results. So I follow the forums and strategies and think about learning to code, the day I quit work.
By visually checking my suggestion of synchronicity I convince myself it would work, but as I say, I lack the time and discipline to check.
After some sugestions by bunker and other reads I immagine that some kind of ea does already exist that triggers on the synchronicity of macd, which shows almost the same curve as the slope. The fact that macd is not normalized does not bother as long as we read only the direction(-change) of the indicators.
slope day (0) - slope day (-1) ~ macd day (0) - macd day (-1)
slope H4 (0) - slope H4 (-1) ~ macd H4 (0) - macd H4 (-1)
slope H1 (0) - slope H1 (-1) ~ macd H4 (0) - macd H1 (-1)
This assumption holds quite well if we set the parameters acordingly.
Miner does it with stoch, bunker with two timeframes of macd and I thought of 3 timeframes of the slope.
I will try to find an example where one of the slope indicators has "saturated" (so slope direction is no longer a reliable indicator) AND my trigger of slope synchronicity would fire. I will publish it on this forum. If you find one, please do so as well.
Thanks Mike