[MicroAl]

For anyone new to trading considering using this indicator please be aware of the following.

Like any trading method , notice should always be taken of the higher time frames. I notice that John Carter advises that many squeezes are not taken if
they conflict with a higher time frame. Also even if a squeeze fires off,
he will wait for a pull back to a ema. Even then if intraday trades are being
taken he will look at market internals such as Tick, Trin Readings and even
pit noise sometimes. Oh and he might also look for a TTM Trend change!

I will not get involved in a flame war regarding TTM and JC and their indicators
but just wanted to advise any newbies that JC does advise not taking every
squeeze signal regardless. Unfortunately there is no holy grail in trading, or at
least not one in the public domain!

[OAC]

Originally Posted by MicroAl »

Like any trading method , notice should always be taken of the higher time frames. I notice that John Carter advises that many squeezes are not taken if
they conflict with a higher time frame. Also even if a squeeze fires off,
he will wait for a pull back to a ema. Even then if intraday trades are being
taken he will look at market internals such as Tick, Trin Readings and even
pit noise sometimes. Oh and he might also look for a TTM Trend change!

Why not just simply trading out of the breakout of NR7 ( Narrowest Range of last 7 bars) ?

[jackj]

Don't have esignal, and unfortunately, I'm not a coder, so can't confirm the coding. I'm looking at how to do this in Sierra. There's one over there, but it's a bit different. If it helps anyone, in non-coding english, the default color is blue, and it changes to red when a bar closes in the bottom 50% (previously, they'd sometimes said 25%) of the ATR of the previous 5 bars (at one point used 6). This is meant to give more of a "heads up" than the breakout would be, I think. The two ways they use it is 2 or 3 bars confirming a change in trend in order to exit a position. And a continuation trend trade, where they look for the prevailing color (trend), and after they get the opposite color, will enter on the second bar of the prevailing trend, indicating a confirmation of a resumption of the trend.

[jackj]

Okay, a clarification, fwiw. The current/last bar's color will be painted based on: if the average closing price of the previous 6 bars is in the lower 50% of the range, it paints the current bar red. If the average is in the upper 50%, it's blue. The current/most recent bar's close, on its own, does not affect the coloring, unless it changes the 6 bar average to more/less than the 50% of the range. At least not the way Carter does it; I've confirmed that with him. Now, Carter calls these modified HA, but I'm not sure if he's using traditional HA's to compute the numbers, and then coloring them, or if they're traditional bars/candlesticks that he uses for his computation, but then when he colors them he considers them akin to modified HA's. I'm almost certain it's the former.