This price action indicator uses the higher timeframe SSL channel to identify trends.
The long entry signal is a bullish candlestick pattern when the price retraces to EMA20 in an uptrend. The short entry signal is a bearish candlestick pattern when the price retraces to the EMA20 in a downrend.
Currently, this indicator shows engulfing patterns, pin bar patterns, 2 bar reversal patterns and harami patterns.
It also shows a volatility squeeze signal when the Bollinger bands is within the Kelter channels. The buy and sell signal can also be filter by the ADX indicator greater than a threshold.
You can set your stoploss to the previous low/high when you go long/short. The risk/reward ratio could be 1 to 1.5.
Hi there. I found your indicator. Found an amazing adverse effect. Most of the time, the price goes in a diagonal line up or down after a background color change. If you draw a baseline after a color change ( at current price ), this gives a nice opportunity to start a position with a trailing stop until the top. Very good Risk - Reward system :-) Great!
nicholsonfredrick
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@WouterBelgium, the background repaints also right?? How are you managing it
fondHawk11108
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Does the background colour also repaints? If not, the background gives much better signals.