Trading type: scalping
Time frame: 5 min
Purpose: reversal trading
Level of aggressiveness: standard
Assets for trading: EURUSD , GBPUSD , USDCAD , USDCHF , USDJPY , AUDUSD , NZDUSD , EURGBP , EURCHF , EURJPY
Indicator «KN29» is based on the linier regression and normal distribution. Regression is one of the most popular and effective methods of the time series analysis and data prediction. Indicator «KN29» uses regression analysis as an alternative to the moving averages analysis. The main aim is data series smoothing to reduce the noise in data. It allows to see market as it is, without deformation.
Using unique author algorithm indicator «KN29» searches for the optimal buy/sell zones. If they are sufficient indicator generates appropriate trading signals.
Parameters of the «KN29» indicator
1. PeriodKN29 (indicator period, default value = 21) – is used to calculate fair value of the asset based on linier regression.
2. Width – defines the width of the stationary channel (indicated by bold lines). Default value = 22 pips.
3. Sigma – defines the width of the dynamic channel (indicated by usual lines). Default value = 2standard deviations. It allows fitting 95% of price values into channel. All the price values out of the channel are treated as abnormal.
Rules of trading
The indicator is designed to work on 5-minute time frame
The rules of trading are extremely simple: when the red triangle is appeared on the chart (sell signal) or a green triangle (a buy signal), a corresponding transaction (sell or buy an asset) should be done. Stops can be placed above/below the red/blue zones.
To gain the access to this indicator, please, send a private message to AndreyDobrov