How do you determine compression? - page 4
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Modified SB (with volatility periodically dependent on time) is tricky. Like the original SB, it is impossible to make money on it (except, purely theoretically, on options), but it may well "draw" something similar to seasonal patterns.
I'm telling you, standard indicator, no sbs and such nonsense
ATR offset by day minus half-period ATR. We compare the reading with the current candle size.
It's no secret that the best entry point is at the market compression ahead of a strong move.
The misconception..., is that this is "the best entry point"....
It is the most DANGEROUS entry point! No one knows what the DIRECTION of the movement will be at these points - 50/50...
The misconception..., is that this is "the best entry point"....
It is the most DANGEROUS entry point! No one knows what the DIRECTION of the movement will be at these points - 50/50...
Oh, Vladimir has started a branch? Well done!
I take it that a contraction is a temporary lull in price movement? If that's the case, I've noticed two variants of such calm:
-the first is when price is squeezed between levels and moves from one to the other:
-and the second is when the price constantly crosses a level, like it's bouncing back and forth over it:
The second variant happens more often. Either someone is gaining a position by provoking other players or something else.
I'm telling you, standard indicator, no sbs and the like nonsense
The ZigZag shows volatility without taking into account the number of candles, i.e. it has no period
but if we ignore the night flat, because the volatility there is very low, I think the ZigZag is not even needed
the open price of the day will be enough and see what range from the open price will correspond to your vision of a "squeeze"
How do you determine compression?
the magnitude of the price spread over a certain period of time
You don't know for sure
It's not about which of us is psychic and sees the FUTURE...
It's just that in this situation the risks are VERY HIGH...
Preferably, such points should be skipped altogether, until trend indicators give a clear picture of the direction of the pair's movement.