Saturday | May 7, 2022 | Noon
Moreover, seeing as how the Bias Overlap version of NPP uses the five-minute dynamic price range envelope and six-minute baseline to highlight and define intraday reversals, I wondered if it wouldn't be easier to verify the authenticity of such potential/possible reversals on a five-minute chart.
Indeed, this turned out to be the case. But, it also turned out that one of the unmodified indicators from the one-minute configuration was a perfect Price Projection Indicator on the five-minute chart...
It should have been the 10-minute baseline. However, it was a proprietary indicator derived from an instantaneous moving average that was calibrated in a radically different manner than my other three zero-lag moving averages, and as a result, it does not match up exactly, so that when I compared it to the one-minute chart configuration, it turned out to be the 15-minute (not 10-minute) baseline!
But the thing is, this proprietary indicator is a much better (i.e., smoother) indicator than the standard moving average to which it is "equivalent," which is the black moving average in the next image. See for yourself!
Yet, this image made me wonder if it might not be even better to average the two, which is what I did, yielding this orange (center) alternative...
Note that if the orange "Price Projection Indicator" is sloping in one direction, and price pulls back in the other direction, the rate will make a correction (unless a fully-fledged reversal is in progress) so that the indicator essentially highlights "guaranteed" successful trade entry points. So theoretically, if I enter a position every time candlesticks are forming on the "wrong" side of a slope, I should almost always make money.
On a five-minute chart, these pullbacks are often simply the tails of candlesticks. But, on one-minute charts, their complete maneuvers are captured in all their glory. This appears to be exactly what I was looking for!
To be honest, I didn't have the exact equivalent on my one-minute charts, so I tried out the eight- and 12-minute proprietary baselines that I DID have, and the latter measure worked better (i.e., was more "stable"). Here is an image of the old Price Projection Indicator (the thin blue moving average) compared to the new one...
Clearly the new indicator does a far superior job of filling this role!
Noting the frequency with which currency pairs reverse direction at the outer limits of the eureka (45-minute) price range(s), and wishing to see such reversals more obviously and over a wider stretch of time than is possible on a one-minute chart, I switched to five-minutes, converting (or transposing, or translating) the 45-minute measures accordingly, but without altering any of the other indicators.
Moreover, seeing as how the Bias Overlap version of NPP uses the five-minute dynamic price range envelope and six-minute baseline to highlight and define intraday reversals, I wondered if it wouldn't be easier to verify the authenticity of such potential/possible reversals on a five-minute chart.
Indeed, this turned out to be the case. But, it also turned out that one of the unmodified indicators from the one-minute configuration was a perfect Price Projection Indicator on the five-minute chart...
It should have been the 10-minute baseline. However, it was a proprietary indicator derived from an instantaneous moving average that was calibrated in a radically different manner than my other three zero-lag moving averages, and as a result, it does not match up exactly, so that when I compared it to the one-minute chart configuration, it turned out to be the 15-minute (not 10-minute) baseline!
But the thing is, this proprietary indicator is a much better (i.e., smoother) indicator than the standard moving average to which it is "equivalent," which is the black moving average in the next image. See for yourself!
Yet, this image made me wonder if it might not be even better to average the two, which is what I did, yielding this orange (center) alternative...
Note that if the orange "Price Projection Indicator" is sloping in one direction, and price pulls back in the other direction, the rate will make a correction (unless a fully-fledged reversal is in progress) so that the indicator essentially highlights "guaranteed" successful trade entry points. So theoretically, if I enter a position every time candlesticks are forming on the "wrong" side of a slope, I should almost always make money.
On a five-minute chart, these pullbacks are often simply the tails of candlesticks. But, on one-minute charts, their complete maneuvers are captured in all their glory. This appears to be exactly what I was looking for!
To be honest, I didn't have the exact equivalent on my one-minute charts, so I tried out the eight- and 12-minute proprietary baselines that I DID have, and the latter measure worked better (i.e., was more "stable"). Here is an image of the old Price Projection Indicator (the thin blue moving average) compared to the new one...
Clearly the new indicator does a far superior job of filling this role!
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