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Re: ER2 and the 34ema
Despite the tight range, this is one of those fortunate days that the russell was very consistant. You had consistant higher highs and higher lows in the uptrends and lower lows and lower highs of the down trend. Trading from moving averages was ideal for these kinds of days. Also the market didnt suffer a lot a painfull consolidation before changing short term trends. The strategy would have made a profit today.
Here are a few things to try as well:
1) Instead of the moving average line, create a 34ema of the highs and 34ema of the lows, use this small channel to help avoid trading into consolidation or ranged cycles, which is the times you want to *not* be using a trendline for setups.
2) Create a MACD of the 5 and 34 ema values to better highlight divergance. This will help when market gets choppy and also provide a stronger signal when that pattern occures near of price of resistance or support.
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