...but I just have to share some charts employing a very simple indicator; the Highest and Lowest Close of the last 4-bars. I started watching this paintbar on the 3-minute using the Highest/Lowest Close of the last 7-bars, but the 5-minute reflects similar effects and has a more comfortable tempo. Used in conjuction with Support/Resistance levels, this can indicate some really great trade potential, while referring to previous swing highs/lows for stop placement.
The following charts have White and Yellow paintbars. A white bar indicates the Highest Close of the last 4-bars (HC4). A yellow paintbar indicates the Lowest Close of the last 4-bars (LC4).
The HC4 & LC4 indicate the highest and lowest close of the last 20-minutes (on a 5-minute chart).
Working on an intraday timeframe this paintbar often indicates high probability turning points within our daily market stages. Here is APA over the last 6-days
Here is HES over the last 6-days
p.s. In times of trend when one is looking for a dip to buy, oftentimes the LC4 (in times of long entries) can be a good fade candle, and the opposite for HC4.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.