A trading strategy that analyzes price high and low touches over 45 days, calculating probabilities for future price movements and helping traders identify potential entry points.
Explore complementary indicator rolesHow it works
The indicator tracks daily price movements by storing high and low values from the previous 45 days. It checks whether these specific price levels are touched each day, creating a probability calculation for future price movements in both upward and downward directions.
By monitoring how frequently previous day's high and low prices are not reached, the strategy develops a predictive model. It applies specific conditions like requiring at least 60% probability of reaching a high or low, and checks for consecutive days without touching certain price levels to generate trading signals.
Why it may be useful
This signal provides traders with a systematic approach to identifying potential market opportunities by quantifying price movement probabilities. It offers a structured method for understanding market behavior beyond traditional technical analysis, helping traders make more informed decisions based on statistical patterns.
By incorporating incremental position sizing and trend reversal detection, the strategy adds layers of risk management. Traders can benefit from a nuanced understanding of price dynamics, reducing emotional decision-making and providing a more disciplined approach to market entry and exit.
When to explore it
The strategy works best in markets with clear directional movements and relatively consistent volatility. It is particularly effective when price levels show predictable patterns and there are identifiable trends that allow for probability-based predictions.
Traders should consider using this signal in markets with moderate to high liquidity, where price movements are more likely to follow statistical patterns. It is most suitable for traders who prefer a methodical, data-driven approach to trading and are comfortable with a systematic strategy that relies on probability calculations.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
