Let's look at another interesting pattern for finding the entry point to the market.
with a period of 200, close, levels 50 and -50.
with parameters: 5, 3, 2.
The essence of the idea: we will look for inputs after the pulse, which will show us the indicator 200.
To avoid a multitude of false signals, we will enter the market once after the impulse, at the end of the first price correction.
Rules for entry into position:
We buy if:
The closing price of the asset crossed the level of 50 200 bottom-up (case 1);
After that we wait for the end of the price correction after returning it below the zone 50 of the 200 indicator (case 2).
We enter the Buy at the intersection of the indicator of the zone 20 from the bottom up (case 3).
We sell if:
The closing price of the asset crossed the -50 200 level from top to bottom (case 1);
After that, we wait for the end of the price correction after returning it above the -50 zone of the 200 indicator (case 2).
We enter sales at the intersection of the indicator of zone 80 from top to bottom (case 3).
The exit from a trade can be at a fixed profit, or at a given trailing stop value.