Ok, thanks. I have some indicators that do it this way also, I just thought you had a different way.

The reason I was asking is the inconsistency of ploting an overlayed chart in this way.
Depending on the chart area size and position of local maximum and minimum prices of the two currencies, the relative position of these two charts can change…[Read more]

Thanks for sharing GG, but how do you normalize overlying chart (GBPUSD in your example) to overlayed chart prices (EURUSD) ?

Vlan

GG please don’t leave.  I always look forward to your posts and even though I may not understand everything they always give me new thought impulses and at the end I learn something new.  After all, you are the reason I joined this forum…

Sorry Rahat :) I was just sharing my interpretation.

I don’t believe the ‘connecting’ lines can be horizontal. They must be askew, starting at a bar’s close and ending at a different ‘correct’ price. If they are horizontal, price is already at it’s correct value and thus there is no trade opportunity.

maybe he’s not looking just at one line… maybe he switches down to lower timeframes and looks at several lines that make up this one line…

@GG53

why do the lines span across several bars, when in fact the very next bar after the signal hits the projected price level?

Vlan