These are WMA bands, that measure 100 period atr vs a 56 period moving average to give you the normal trading range. Dotted lines are good for stops and take profit levels.
Commentaires
equeiroz
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Excellent indicator! Thanks for sharing.
IvanLabrie
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@equeiroz, welcome! You can easily come up with a simple rule set to utilize it. For example some candle pattern to confirm when to fade extremes, etc.
thefunc5
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Why 56 Period MA? This indicator has provided really interesting backtesting results and I would love to learn more!
IvanLabrie
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@thefunc5, it's just something that seemed to work decently well in general. There's always problems with fine tuning parameters to fit a particular period in time in your back tests though. I prefer to apply rules across the board and not optimize for data sets as that would make you good at trading the past only... It's a very simple solution that you can turn into a trading system with very few basic rules
cooney_s
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Very useful !
AG_Rajeshwar
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thank you, but i don't see the dotted lines...
IvanLabrie
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@AKG_Rajeshvar, the dots are from another indicator I had made at the time.
IvanLabrie
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@AKG_Rajeshvar, the general idea is to fade the extremes, like you would with a Bollinger band but the inner bands on each extreme help give a high probability take profit level. Additionally you can trade from the inner bands to the other extreme. If you want more info send me a pm