About Smart Lines Indicator
This is a very powerful yet simple indicator. You can use this indicator to decide upon stop loss, you can use it to determine trend. You can also combine it with other indicators to filter out bad signals.
The indicator draws two smart lines around the market price. Red color line is drawn when market is trending down, Aqua color line is drawn when market is trending up.
This indicator also has an additional feature called "Pivot Market Sentiment" that helps you determine the market sentiment. This feature helps to avoid bad signals. The Pivot Market Sentiment is disabled by default and can be enabled through the indicator inputs. If there is no significant news in the market for the day, it is highly recommended that you trade only in the direction of Pivot Market Sentiment for intraday trading.
If price opens below the pivot point, the market sentiment shows down. If price opens above the pivot point, the market sentiment shows up!
I am sharing my trading strategy with this indicator. There are lot of other ways you can use this indicator. It can be used for entries as well can be used to decide upon stop loss.
Feel free to experiment and play with this indicator.
The Good Deal Strategy
A traders job is to get great deals! This is what the strategy is about!
When to enter the market?
Make sure that you know what is going on in the market fundamentally. Read what central banks are planning and what their monetary policies are, keep eye on economic news events, read and understand more about inflation/deflation, GDP, debt and their interest rates.
Once you get the bigger picture, you can trade with bias formed by your fundamental analysis. With this, I have been able to win most of my trades and been able to get high win rate with low risk and high returns.
For smaller timeframes, you can use Pivot Market Sentiment and trade only in that direction. Keep eye on economic news or central bank speech, because they could change the market sentiment. On the days when there are no news, you can safely trade in the direction of market sentiment.
For long position, you should enter when the price falls and touches or goes below the Aqua line after the Aqua line appears. If the candle closes below the Aqua line and the Red line appears, it'd be the right thing to get out of the trade. You should also use hard stoploss of 60 to 200 points, depending on the time frame and your risk appetite.
If the price jumped up on your entry, you can either breakeven and ride the trend or take profit according to your risk to reward ratio!
For short position, you should enter when the price rises after the Red line appears and touches or goes above the Red line. If the candle closes above the Red line and the Aqua line appears, it'd be the right thing to get out of the trade. Again, you should also use hard stoploss of 60 to 200 points, depending on the time frame and your risk appetite.
If the price falls on your entry, you can either breakeven and ride the trend or take profit according to your risk to reward ratio!
When unsure about the fundamentals and news, trade basing on market sentiment! If you see few candles in the same open/close range, do not trade! Sometimes, the best trade is no trade! When in doubt, stay out!
Have patience and never hurry to get into a trade or revenge a trade. You will get lot more opportunities in future.
Best of luck!