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In the attached chart – “close” and “sentiment” are in opposite directions on the same bar – so NEXT bars will meet the current bar “SENTIMENT” price.
So my interpretation would be that you’d have to define some kind of threshold difference between close and sentiment to trade this on the active bar. Correct so far?
To enter such a trade you need: potential Profit-Costs>0. G.
You also have to obviously consider the size of your average loss as well as the average winning percentage.
Something like this??I used Typical Price (HLC)/3 on mine. There are probably better ways to do it..
Drloyd, I like your attitude!
Actually gg does not see “short bodies”, as he use line-chart he see lines. And he see only the stright line between Close 1 and Close 2. Thus some part of the movement “get lost”. This is out of my understanding – how by the shape/or position of the line one could understand the direction the price actually is going. There should be something more to look at and compare with to understand the sentiment of the market. EURUSDD also used line-chart but he compared it with BB and stochastic…
OR… may be it looks like SS?… but it seems that gg put these lines “by eye” without complicated calculations… 
Quite simple. Instead of staring at one line chart I stare at two… They are very much correlated most of the time, but sometimes they don’t. When they don’t correlate, and in opposite direction within the same bar – the “Close” price will move almost immediatly to the “sentiment” line. G.
Something like this??
Attachments:
You must be logged in to view attached files.Has any one followed iDoubleStoch’s Funny Rectangles thread on FF? I think it may be related to what GG is implying here.
Oops, file too large – 16MB
Hi Everyone,
I recently downloaded the attached document regarding Captain Jack from the Hopwood forum. I have not had time to study it, but it looks very interesting..
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