This is a simple script designed to help filter out bad trades. LSMA is a trend king and by using the 21,200 and 1000 length lines traders can get a clear view of where price action is travelling. This indicator is the perfect companion to the LSMA Wave Rider indicator. Once a pullback is discovered (price action crosses under blue or white line) Traders can use LSMA Wave Rider to locate perfect entry point. Least Squares Moving Average follows these rules: When price crosses over it signals a bull trend. When price crosses under it signals bear trend. When price stays close or on the line sideways action is to be expected. The direction of the line shows the direction of the trend.
Here is an example of finding good trades. Price action pulls below white or blue line.
Another example of what a pullback looks like.
This example shows how to find trend using crossovers.
Another example how trend can be found but by using line direction.
for along time i searched about finding best lenth in exactly 5 min chart in combination with additional BB band with moving average lent of 75 and some time 200 with multiplier in one,my used lenth for diffrent market was diffrent abit but not much ,i used 217 and 78 but depomd on my experince in SMA alweys lower time fram in combination with long number gave me best result,i think your lenth number combinations are perfect,maybe better observation for specific asset and changing them in range of 5 till 20 should give the best result,general idea is test and find the best two lenth in historic data that lrc dokissing and after we see huge bounce ,when it cross like yous example it doesnt give same risk to to rivard or better say stop loss is much more short in that setup,also i will test LSMA Wave Rider ,perevius i use Leaner R slop for finding lets say divergrence,but it had alot bug and difficult to find best number but worth to try,this indiactor has alot value and gennerally like vsa there is not much sound and data about them,thank you so much for giving this opportunity to other, sorry if its long i just wanted to share my experince to that maybe it become start of new wey in others mind,with the best hope for all the champions,cheeers.
jcerezo010
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@masoudsiamisufiani, I want to know if I understood.. You use in 5 minutes TF two SMA, one of 217 and other of 78 length It is okay? Thank you!!
I set it at 15 minutes and it looks like I'm going to do a very good job on the entry with overlapping lines at high daily and low daily prices. Still validating! I'll comment again◎ Good indicator♡ Thank you👍
Thank you so much for your remarkable contribution. Since I started using your indicator, I have improved my day trading profit by 60%.
photo_romeo
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which time working better ? blue line lsma 1000 ??
veryfid
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@photo_romeo, Hi, In my opinion to be a successful trader it is essential you use multiple timeframes (MTF) to do your analysis and prepare your entries. Best thing you can do is look back on the charts and test what works best for your strategy.
AramKurdo
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great thank you! but more details would be even more great!
veryfid
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@AramKurdo, Hi thanks, I recommend looking into Least Squares Moving Averages for more information.