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Description of my Tug-of-War (ToW) indicators (named for the tug-of-war between the bulls and the bears):
Analysis ( daily chart on the left):
Conclusion: Go long today. Close position by the end of today. The analysis on the 3 day chart is similar except the direction lines are trending down and the swing line's last low reached lower values. All of this is a concern and therefore, we'll go by the 1 day chart only and close end of today.
"Like it" if you like it! Add your comments, questions or concerns if you have any.
DISCLAIMER: Security trading involves substantial risk of loss. My analysis is not trading advice. Do your own research first and/or consult a financial advisor. I'm not responsible for any losses you may incur following my analysis.
- The price moving up or down is usually correlated with the lines of my ToW indicator being above or below 0 (you can hover in the chart above over previous bars to confirm).
- The green lines in the 2nd pane from the top and purple lines in the other panes are the swing line (it often swings up and down from one bar to the next around its moving average).
- The rest of the lines are the direction lines (they show the expected direction or trend).
- The ideal setup is for the trend to be one way (let's say on the up side of 0, preferably pointing up as well) and the swing line to be the other way (to be on the down side of its moving average, the red line). Thus the purple, swing line will likely swing back to be on the same side of its moving average as the trend lines are on the side of the 0 line (unless the trend breaks down). This is like buying during dips on a strong uptrend.
- In addition to that I'm also looking for potential divergence between the top pane lines (ToW-D) and the price which may indicate a reversal.
Analysis ( daily chart on the left):
- The direction lines are above 0 and trending up which means the trend is up.
- The swing lines are low indicating a temporarily the price is oversold.
Conclusion: Go long today. Close position by the end of today. The analysis on the 3 day chart is similar except the direction lines are trending down and the swing line's last low reached lower values. All of this is a concern and therefore, we'll go by the 1 day chart only and close end of today.
"Like it" if you like it! Add your comments, questions or concerns if you have any.
DISCLAIMER: Security trading involves substantial risk of loss. My analysis is not trading advice. Do your own research first and/or consult a financial advisor. I'm not responsible for any losses you may incur following my analysis.
I published my ToW indicator as an invite-only script. Send me a PM for an invite and you can use it for free for the rest of the year. Algo w/ 700k% profit since 2012 in backtesting! Join free https://discord.gg/wDTkRnS or https://t.me/TradersForecast
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