The ulterior motive of this indicator i feel is that, if you see in the LIVE CHART THE FOLLOWING
1) The RED LINE CROSSES THE BLUE LINE IN THE UPWARDS DIRECTION, then Go long.
2) When the RED line crosses the blue line in the downwards direction, THEN GO SHORT.
No other worries need to be accompanied to one while active trading, if this is proved to correct, provided that its grilled with a lot of successful percentage of back tests, with different types of market phase.
Regards
Saivenkat
1) The RED LINE CROSSES THE BLUE LINE IN THE UPWARDS DIRECTION, then Go long.
2) When the RED line crosses the blue line in the downwards direction, THEN GO SHORT.
No other worries need to be accompanied to one while active trading, if this is proved to correct, provided that its grilled with a lot of successful percentage of back tests, with different types of market phase.
Regards
Saivenkat
You can make any type of observations at the end of the day since YOu will see the complete picture at the EOD.. But during trading,, many places where the two lines embrace each other , you will find it very difficult to decide which side the Cat Will jump..
You can keep other indicators or other observations to help you take a decision which again will be 50:50.. This is what makes people to loose most of the time who do intraday trading...
If your trade goes the other side.. you should have the swiftness to switch trades.. else it will end up doing a losing trade..
JD