Any traders use this interesting tool I came across today?
"Originally developed by Goichi Hosada pre WWII, a newspaper journalist (published in 1969) who wanted to develop an Uber-indicator that could provide the trader with various levels of support/resistance, entry/exit points, direction of the trend, and strength of the signal."
What I particulary found interesting was the use of 2 moving averages. The 9 period and the 26 period. However, instead of using the close it uses the midpoint of the spread of the bar. The indicator itself has further rules to it as it uses "clouds" as support and resistance.
Below is a snapshot:
Now, I am not fan of indicators as I only rely on order flow through tape with futures. However, some of the techniques I use in futures can not be applied to equities in Japan. Therefore, I have been looking around something more automated.... hence the search of this tool. I have been testing around with the moving averages (Ichimoku version) and have surprisingly found some useful setups. I was wondering if anyone is familiar with them and can comment on them?