Pick Bottoms and Tops of a trend with ZTrend indicator.
Rules of Trading with ZTrend
1) Use this indicator in multi frame for superb results.
2) If you are a Short Term trader, then use 2 hourly and Daily timeframe combination. So after a downtrend, buy when 2 hourly candle turns green and wait until Daily candle also turns Green. Exit when 2 hourly candle turns red. Ride the trend and do not exit until the 2 hourly candle turns Red.
3) When 2 consecutive candle body become thin, means end of a trend is near. Therefore either reduce the position or hedge.
4) If there is a steep fall (long Red bars), then the first green candle is generally a false signal. Never enter on such bounces.
5) Double bottom, means the low price of two consecutive swings are same/nearly same. That it is a much better signal. Entry after a double bottom is a very strong signal.
6) Trade only on trending stocks or indexes. If a stock is making many red and green candle, then never try to trade it on ZTrend.
Discipline is the key, therefore exit on the indication and do not wait in hope of marking turning your side.
Notes de version
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Updated with Additional filter. Filter to take a trade and exit a trade is identified on chart with arrows.
Notes de version
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Overlay changed to overlay on chart. Hide the main chart bars to view ZTrend bars.
Notes de version
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In this version, OverSold and Overbought Indication on bar itself, as Black Color.