There are five colors on the stairs.
- Blue: Trend stairs. Only buy when the green stairs lie above the blue stairs. And only sell when the green stairs lie below. It can also serve as the dynamic stop loss.
- Green: Indicating stairs. When the green stairs form the shape of "go upstairs", open a buy order, and close this order when seeing the "go downstairs" shape(when Green are above Blue). When the green stairs form the shape of "go downstairs", open a sell order, and close this order when seeing the "go upstairs" shape(when Green are below Blue).
- Red: It is like the red light. It is better not to open any order when the stairs become red.
- Yellow: It is like the amber light. Its means is "Be careful, the trend might end". If you have opened a buy/sell order, it is better to set a stop-loss to ensure your profit. Close the order and wait another open-order signal is also a good idea.
- White: White stairs mean that there is big news happened just now and the market needs some time to adjust itself. Open an order at this time might bear greater risk.
- Fastladder:100; (for changing green stairs)
- Slowladder:100; (for blue and white stairs)
- sigma:1000; (for the precision of green, blue red stairs)
- ppc:100. (for yellow stairs)
This group of parameters above are only fit for 1H timeframe and EURUSD, GBPUSD,USDCAD .etc whose price form is 1.*****.
Not fit for USDJPY or other XXXJPY.
If you want to use this indicator in other time frame, you can try different parameters by yourself. And I am also doing this work. Current result is "sigma=4000" might fit 15M.
Tip for opening an order
Suppose there is an open-order signal, if the price bar lie far from the green stairs, you can wait and open the order until it approach the green stairs again.
Merits of this indicator
- It can avoid some concussion trend (red stairs).
- Yellow stairs is a goooooood idea.
- Blue stairs can form the dynamic stop loss and when you think the trend might end and want to ensure your profit, move the stop loss from the blue stairs to the green ones.