Forums Trading Systems Discussion True Bars/Candles and Market Sentiment Reply To: True Bars/Candles and Market Sentiment

#9439
pipatronic
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    Thank you, @simplex for your indicator. I’m sure I haven’t fully understand the idea of the price river flow. As far as I understand the idea is to identify price regions at which price can act with low force. That’s comprehensible. Thus, we could trade this fact by waiting that high volume forces price to leave its river bed and predict the revisitation. But what I can’t understand is why the revisitation is highly probable. For instance, if we use the river analogy, we can see that after a flood a river uses a new river bed and never returns to its old bed. Why should it be different in the markets?

    I can see what you are saying Anti, I have added a picture below and lets say that the blue area is normal river volume/level and them the floods come, so why in the FX market should it return to this level.

    Maybe I am doing this completely wrong ?

    Should we be looking at this in levels of relative proportion ?

    Pip

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    skype : pipatronic

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