This is from a YouTube by Oliver Velez. He calls it the PCT (position, color, trend) trading.
For position he wants close above both moving averages. For color, more green than red
bars or a "power" bar that totally wipes out the previous bar by a huge amount (50% bigger?).
For trend he wants the ma(20) moving up.
He prefers all 3, but will take a trade on just 2 being right.
Later in the video, he talks about Location and State. Location means he want
the entry on a candle coming off of, crossing one of the moving averages or at
least "near" one of the MAs.
For "state", he talks about the ideal area for entry is when both moving
averages are "close" together. The farther the MA are apart, the worse
the "state" of the trade becomes.
This is what I have so far. Any help to define this would be greatly appreciated. I haven't
gotten it to 2 of 3 being correct, I just have all 3 being correct as an entry. Nor have I
added the "nearness" of the 2 MAs or the "state" characteristics".
Can you provide a link to the video you watched as all of the ones I've looked at are day trading 2 minute bars only, which of course we can't see on SF.
Here is the video. Even though he uses it on the 2 min chart, I've found
that all chart times work the same. A trading idea for 2 min works just as
well on daily or weekly charts.
That video was one I hadn't looked at, but it didn't address the problem I'm having working on improving your filter: how many days back to look on a daily chart?
1. In multiple videos he defines the entry point for a Buy situation by drawing a box showing;
a. position of the 20 day being above the 200 day (your filter probably needs this condition added)
b. position of the 200 day
c. position of the last close
d. position of the lowest price in the last 45 minutes to an hour
e. position of the highest price in the last 45 minutes to an hour
2. He calls it Fabulous Four in some of those videos I watched
If he prefers to look back 22.5 periods(45 minutes) on a 2 minute chart to define part of his box then does that mean he looks back at least a month on daily charts?
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