Wisp Bro,
I will check out your observation today -considering Gaps as ERL. I dont think there is any other way but to check manually.
One observation from my side:
Among all things dada has taught us, I think ERL is the most powerful tool & a complete strategy can be built around it. Still trying to figure out why this works. One thing is certain that it works (except in range)
thanks
Yes,Thanks to Subhodip ,I have built a strategy to catch reversals via ERL concept.Here it goes .Subhodip da please advise for suitable changes if required.
Time Frame - 3 TF Nifty
Entry Structure :
1. FoR short:-
Prior UPtrend ie.Higher High Followed by new higher High ,Wait for price to Break above this High and ERL to activate .Enter on Failure /Rejection of this ERL when price reverses back.
Aggresive entry - Price closes below ERL
Conservative Entry : Price breaks mpl
2. For Long :-
Prior downtrend ie. Lower low followed by a new low ,wait for price to make a new low and ERL to activate ,Enter on failure /Rejection of this ERL when price reverses back.
Aggresive entry - Price closes above ERL
Conservative Entry : Price breaks mph
Trail as per mph /mpl and Exit on break of mph/mpl