PennyTrader; You're a generous guy to point that out. "little Jimmie" wouldn't know a good thing if it bit him on the ass. Your comment (as you probably know) is part of a concept called the "Value Area Rule". Although there is more to it than that, I know quite a few folks who trade using only that rule set. Nice of you to make it available to this crowd. I have to admit I have changed my opinion about you, since you started your original thread. Check your PMs for a source to the rest of the rule set. Good luck and continued success with your trading. Steve
If you want to trade your indicator, make sure that if the market is a 24 hour market, your calculation base has to be the H+L+C/3 of the bar, and only the close. That same thing applies to whatever market you trade on a short term basis (ie lower than daily charts). Many people use indicators calculated on the close as if the highs and lows would not matter at all.... Besides the KISS thing, i would advise taking an EMA of the HLC3 and seeing if that suits your purpose. Remember: You need not be a programming or tech analyst to be a trader. Word!
No kidding? I have never been there. I was only repeating a quote by him in Perry Kaufmans "new trading systems and methods 4th ed 2004". He does say that he developed the MESA software to find trends...not trade cycles. When the cycle is identified he would short crests in a down trend and buy troughs in up trends. I stand corrected. There are no absolutes in life as in trading. Thanks for the color.