Specifically: I wanted to see if better Exit signals for the could be generated from a basic application of some of the concepts in those chapters, and that is what I've found so far:
- Exit when the (purple) crosses below the orange line
- Orange line is forecasted for positive price reversals, blue line is forecasted for negative price reversals
- From what I can tell, this indicator does not work well during chop/consolidation and ranging periods, generating too many false signals without additional confluence from trending indicators and price analysis
- This indicator should be considered highly experimental - do not use live trading without proper backtesting and parameter adjustment.
- Tuning per asset and timeframe is required due to calculation type for highs/lows used for projection calculations
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.