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Originally Posted by takechance
I got these pics from a website offering some signal service. Please look at the charts and see if you can identify the indicator.
Thanks.
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Don't let these images fool you...
Those 4 pictures are taken were there is always a piece of nice trend to see and were one would have made nice money.
Bring this indicator to a sideways market and it will cost you dearly. Whatever kind of time frame.
The smaller the time frame the smaller the losses but a lot more fasle signals.
The bigger the time frames fewer false trades but if you have 4-5 losers in a row they eat big chuncks. Because one has to wait till price reaches the other side of the channel to be stopped out or reverse.
These kind of indicator (envellopes or bands or channels etc...) work all very well in trending market. They are pure trend following indicators. But they eat up all the profit in sideways or consolidation markets.
And remember a market is more in consolidation then in trend.
regards...iGoR