This is two different indicators combine into one.
First is the two different period of Williams% 5 mins and 15 mins. Second is the MACD line of 5 mins chart. Both will be primarily use on the 5 mins chart, you can use on another time frame if you wish
Williams %:
green = uptrending red = downtrending
Bright green: overbought condition, look to Short at the end of the signal Bright Red: oversold condition, look to Long at the end of the signal
MACD: I also added the MACD line which you can use for divergence when price move higher and MACD is moving down, expecting price to drop sometime soon or vice versa. See chart for example.
Comments
Lavzz
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Its simple enough, but looks very good. Thank you for your work!
JohnKer
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So have you tried this in real trading on a 4 hour chart, or a day chart, or a weekly chart?
CooperHoang
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no John, so far only paper trade, only tried on 5 minutes chart
JohnKer
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Ok, looking over your indicator it looks good. One issue though is how do you filter out the double signals? Where it gives a say, buy signal, but then price goes lower and it gives another buy signal? Any suggestions?
CooperHoang
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You can combine this indicator of mine, when both confirmthe same. it is pretty close to accurate in predicting the direction
You can see in this example. Divergence confirmed the next expected move which is DOWN, then there is a overbought signal and look what happens, price move down before US open. ONCE US open at 8:30, there is high volume for the green candle signal smart money is moving market up, any price below this candle is pretty much free money. You would then wait for the price go become over sold, then BUY to ride it up for a huge profit...
JohnKer
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Very interesting work, I'll study it more and maybe try a few small trades. Thank you for your effort and responses.
CooperHoang
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You welcome mate. Please let me know if you run into any issue so I can tweak it if needed.
JohnKer
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What is the indicator of the large green and red bars behind price?