This is a new strategy I'm trying to develop utilizing volume profile theories to identify reversals for swing trading in range bound markets only ( not trending)...It's firstly selected on the dailies using the Alligator as a filter for non-trending markets.
If the mouth is 'closed' the Alligator is sleeping, and it's likely to be changing into a range bound market...
The Hangman is then found using a 2 hour time-frame.
There is several criterion.
1. The white horizontal lines are the days volume point of control or VPOC ( max volume price). There needs to be a narrowing of distance between the last 3 days in price percentage ( deceleration). All days must be below the 20 EMA moving average.
2. The next criteria is the price must rally > 20 EMA and form a HH Gann swing;
3. and a higher VPOC must form creating the two "eyes"
4. The BB % B must show at least 1 oversold signal below 10% line in last 20 bars or 2 spikes within 50 bars
5. To enter at a favourable price look for the Gann Swing Oscillator to be -1 ( buying) on a retracement down...
6. and price must fall but be = or slightly > 20 EMA and below than the " eyes" VPOCs...
*stoploss is -0.1% below the lowest " mouth" VPOC
* Target must be > 2 * stoploss.
Trade closed manually:
decided to take profit at +85 pips this morning
Trade closed manually:
took profit at + 78 pips after a bearish reversal bat at highs...
