I have really been putting Numerical Price Prediction to the test by trying to make money with it when the market is not trending well—when it is neither liquid nor volatile. I figure if I can trade profitably during such periods, finding success when the New York session is in full swing should be a piece of cake.
The final version of the Bias Overlap configuration used what I considered to be a new and improved version of the Price Projection Sidekick, but when I plotted the old and new indicators next to each other, it became clear that an even
better measure would be the average of the two.
I later looked for a standard substitute for their average and found that the 12-minute baseline was almost an exact match.
This came into play when I wanted to find a way to judge whether it was worth entering a position (when the market was essentially dead) without referring to the lower-panel histogram representing the slope of the 45-minute baseline.
It turned out that apparently, what I’d like to see is for the (purple) 12-minute baseline (i.e., the price prediction sidekick) to maintain a parallel course with the upper (blue) or lower (red) band on the dynamic six-minute price range envelope when the blue band is sloping up or the red band is slanted down (but NOT when the bands are level/horizontal, obviously) and for the candlesticks to maintain their position above or below the (green) 2-minute baselines, as appropriate...
And if the candles are painting to the
outside of the envelope, so much the better. In fact, if the candlesticks are
not yet forming on the outside of the six-minute price range envelope, I probably shouldn't even risk the trade.
(Of course, whether price action is taking place above or below the [indigo] price prediction indicator is yet anther factor to keep in mind.)
Intervals where the above conditions were met in the attached image were relatively short. But, between 5 to 10 a.m. PST (my target hours for trading), such trends are sure to be supported by much greater momentum, and as a result, last far longer.
