I am a new member of the Forum and a very unexperienced trader who constatnly looks for new ideas.
I am a swing trader. I reverse my position every 2 - 4 days based on an indicator that I bought (I do not show the name of the indicator because I do not know if the Forum allows to show the stuff that is not free). Please see how it works on the attached print screen. When the blue line goes up and red dots appear above it, I reverse into short. When there are green dots above, I reverse into long.
I am from Europe (forgive my English). Our exchenges offer 'open interest' data in ticks, while US exchanges offer 'open interest' data daily only. Open interest in my local exchange varies from 50,000 to 80.000 during a week - that is a huge fluctuation.
The indicator that is shown in the print screen works perfectly on 20 minutes bars so far. But it will eventually mismatch 20 minute bars and my signals will become less and less accurate with time.
I was thinking of how I can make this indicator resistant in time and one idea flashed my mind. I was wondering if any of you guys came accross a charting software that allows to create bars based on a number of contracts traded as percentage of overall open interest.
It is my guess (I may be totally wrong here
) that when I replace my time bars with the ''bars based on a number of contracts traded as percentage of overall open interest'' - sorry for this lenghty and hard-to-understand phrase - I could get adequate signals no matter what wolume and time.
Could I get your opinion on this concept?
Regards