I think it’ll be of nice use in predicting / deciding the direction of candle in forex.
I backtested my formula for this on EUR/JPY and EUR/USD and it gave astonishing results.
Speed of trade = (Price amendment / Volume) per unit time. = (Open-Close)/tick volume within the default amount. If rummy of current candle is larger than doubly the typical rummy of the chosen amount, next candle are going to be within the same direction of the present candle. (Our signals is given at the shut of the present candle).
Caution: If current candle is followed by same color 2-3 candles, no signal is to incline.
As Associate in Nursing example:
Date E/J(Open) E/J(High) E/J(Low) E/J(Close) Volume(E/J) Direction worth amendment Speed
11/06/2012 03:56:00 102.456 102.456 102.429 102.429 ninety six DOWN -0.027 2.81
11/06/2012 03:57:00 102.429 102.429 102.398 102.413 158 DOWN -0.016 1.01
as speed is larger than one.70 (average of fourteen candles), it predicts that next candle are going to be down.
This indicator is created to seem} sort of a meter or simply the quantity will appear with the signal on the candle. i feel this may facilitate an excellent deal in creating right choices. the idea behind this is often that each rise or fall desires a force or inertia larger than the present force, thus as presently we tend to see or capture such further force, we will verify successive candle direction and values conjointly.
- How to predict the next Forex Candle Color and direction