Comrades, I hope you all had a profitable new year. For a few months now, I have been applying a strategy based on the HA Algo oscillator and the price position in relation to SMA 200.
I would very much like you to take the time to give it some review and feedback. Frankly, it is quite simple and, more importantly, completely standardisable and automatable. I use it for Forex on a 1 minute time frame. On average, in the last three months the strategy has given me 10 entries/week, 90 min wait until reaching TP, 70% effectiveness and 1:5 RR. For me it's more than enough, given that it is about making an agile and quickly executable analysis. But I would like to have external opinions to see how to improve it.
From a price action perspective, it is about identifying the levels where the price has actually reached an exhaustion phase (RSI + HA candles rally), while the opposing forces have been building up to make the next big move (internal SMA 200 + stochastic position).
SCENARIO OF INTEREST
there are 4 validation elements. 4/4 must be fulfilled
1. HA candles must come in a clean rally (at least 7 consecutive candles that break at least 2 levels between: -10, 0, +10).
2. Rally must be completely below stochastic for bullish entries and completely above stochastic for bearish entries.
3.The internal moving average must be SMA 200 (set it up) and, at the time of the alert, must be above or below zero (as appropriate).
4. On the chart, price must be above the 200 SMA for bearish entries or below the 200 SMA for bullish entries. It is also valid when price pulls back to touch SMA200 for momentum (these are the highest momentum entries).
ENTRY Once the scenario is validated, I enter at the close of the next candle that is a multiple of 5° (XX:00, XX:05, XX:10, XX:15, etc.). Why? Because it works for me.
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-> Here are some entries from the last few weeks to visualise the strategy in practice.
CoffeeShopCryptoThese are impeccable! Love them. I have lately been studying the oscillator movements when there is what you see here as a RALLY. ive noted a rally...These are impeccable! Love them. I have lately been studying the oscillator movements when there is what you see here as a RALLY. ive noted a rally to be when the RSI and the candles completely cross the RANGING area without the RSI ever touching its own moving average. This seems to be when there is a liquidity run. Now theres no way i can code this validation into the algo because the math just doesn't exist. Its a bit predictive. but at least from a visual sens we can look back and see it, mark the areas, and we would expect a bounce.Show more1 year ago
CoffeeShopCryptoThat 3rd image you posted though is a tough one. It seems you may have developed a confluence for a liquidity run of a lower timeframe to a price...That 3rd image you posted though is a tough one. It seems you may have developed a confluence for a liquidity run of a lower timeframe to a price correction of the current timeframe.Show more1 year ago
bateriabajaHi Eric, thanks for your feedback. Regarding the first comment, I don't know if it is possible to configure the option to capture the rally, that...Hi Eric, thanks for your feedback. Regarding the first comment, I don't know if it is possible to configure the option to capture the rally, that is, to have an alert appear after a certain number of consecutive candles in the same direction. I think it would be a way to capture the scenario in a more automatic way, as that is the starting point... I have also seen that the rally (momentum) works for continuation entries, when along its path I can see that it has broken the 200 SMA on the main chart, whether up or down. However, I still need to standardize that scenario.Show more1 year ago
bateriabajaThe third image is interesting because it corresponds to the price behavior after some relevant news. On Friday specifically at 8.30 am. So I put it...The third image is interesting because it corresponds to the price behavior after some relevant news. On Friday specifically at 8.30 am. So I put it in to demonstrate the strength of the strategy even in times of high volatility after news.Show more1 year ago
there are 4 validation elements. 4/4 must be fulfilled
1. HA candles must come in a clean rally (at least 7 consecutive candles that break at least 2 levels between: -10, 0, +10).
2. Rally must be completely below stochastic for bullish entries and completely above stochastic for bearish entries.
3.The internal moving average must be SMA 200 (set it up) and, at the time of the alert, must be above or below zero (as appropriate).
Once the scenario is validated, I enter at the close of the next candle that is a multiple of 5° (XX:00, XX:05, XX:10, XX:15, etc.). Why? Because it works for me.