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This Float indicator is completely useless for the trading you want to do.
On the image you see many red vertical lines. Each of the vertical lines was a bar were the float indicator was saying to go short.
Even if one would wait for 1 confirmation bar then you still see that this would not help.
What the indicator does, you can do this for yourself. If price is going up after each bar you say: this was the top. Everytime when that top is broken you say again: oops sorry but this is the top. If you will say this long enough you will see that at some point you will be spot on (if you forget all the times that you were wrong).
This indicator is showing nothing more and nothing less then the low over a period of time and the high over a period of time. To build a strategy on this for scalping is impossible.
The only use I can see for this indicator is more the opposite.
For example: if you would place this indicator on a day chart and if price or the close of bar would break the previous low or high go long or short (ex. if price breaks true the high of the last 3 days then go long)
Or as a stoploss or trailing stop. When you are in a long position based on a day chart and price would fall down true the low of the last 3 days then exit.
The zig-zag indicator can tell you the same as what the float indicator tells you (light blue line). The last leg of the zig-zag indicator is dynamic and for thse reason useless for trading or for timing entrys. The same goes for the float indicator.
friendly regards..iGoR
Last edited by iGoR; 06-20-2006 at 07:31 AM.
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