Just trolling around the net I came across this:-
(based on moving averages seen as smoothed collections of pushes).
I have three simple moving averages on my hourly screen: one at 8 bars, one at 32 bars, one at 96 bars: one for a shift, one for a day and a half, and one for four days.
When all three moving averages are pointing up and I have this for a buy window, or are down, and I have this for a sell window, I make the window background black. These are my super-aggressive windows.
When all three moving averages are not pointing in the same direction, I make the window background
Olive drab. These are my “what if” windows.
Most of the time it works out that number of windows in each color are pretty much equal. Black and red windows are more longer lasting ones and the olive ones are in transition from black to red and vice versa.
My trading behavior depends primarily upon the color of these windows, and the behavior of the fastest moving average within the window.
If that particular moving average is moving at an angle greater than 30 degrees with the horizontal and in my direction, I am all in: My take profits will overlap pending entries. When I see a window in profit, I enter a new trade the same way first, then open the close window on the other trade, and watch it until it stops moving into profit. I close that window, and expect to see the new window in profit. Then I throw a take profit on that entry at my leisure. For a brief time I have doubled my bet on that window, until, of course, I close the first one.
If it is moving at an angle less than thirty degrees with the horizontal, I am more disposed to put a pending trade in, so that if it goes back not a greater than thirty degrees, I am in.
If I see such a trade in profit, I open the close window first; closing the trade when It starts hesitating to move in my favor, and then looking around to see where, or whether, I wish to put another trade.
Another black window may have a setup more to my liking….
I never enter a trade in an olive window. I will put a pending trade there in a position where the window has to turn black to catch the trade, but that is it.
Red windows are only to see candidates for closing trades in loss.