Quote Originally Posted by Andrei View Post
My answer would be, that honestly I have no idea! But I see that you found such a filter... So, what is that column to the right?

Great job, Pascal!
The issue with ATR is that it is un-directional. So what we need is simply to get the direction back into ATR or at least have an indicator that separately produces the ATR direction.

Standard Wyckoff or Larry Williams indicators usually say that when the price finishes at the top half of its day range, this is a positive sign of accumulation. The idea is simply, instead of using the day's range, to take the day's true range, get the mid-point and calculate the ratio of the difference between the close and the mid-point to the mid point. (Close-Midpoint)/Midpoint. This small formula gives you a directional strength of the true range. What I do is then calculate the 20EMA of that value. if it is negative then the buy trade cannot restart when the LT/ST conflicts stops. Otherwise, it can restart.


Pascal