Fellow traders,
The attached pdf (page 6) includes a price action strategy derived from the famous technical analyst Tom Demark. This is his concept where he used the REI (Range Expansion Index) to find high probability setups in Forex, Futures and other markets.
Instead of the REI this is simulated using the good old Stochastic oscillator which mimics the REI almost perfectly! However the settings are adjusted to 5, 2, 2 to recreate it.
As you will see it pinpoints entries for minor rallies in a downtrend and sell-offs in an uptrend for trend continuation trades.
I use it on 4 hour Forex spot charts and ES 1500 tick charts with decent success combining Bollinger theory from John Bollinger himself.
Have a look and let me know if you have any questions or how you get on!
I will try and post some chart examples here when I get some time...
The attached pdf (page 6) includes a price action strategy derived from the famous technical analyst Tom Demark. This is his concept where he used the REI (Range Expansion Index) to find high probability setups in Forex, Futures and other markets.
Instead of the REI this is simulated using the good old Stochastic oscillator which mimics the REI almost perfectly! However the settings are adjusted to 5, 2, 2 to recreate it.
As you will see it pinpoints entries for minor rallies in a downtrend and sell-offs in an uptrend for trend continuation trades.
I use it on 4 hour Forex spot charts and ES 1500 tick charts with decent success combining Bollinger theory from John Bollinger himself.
Have a look and let me know if you have any questions or how you get on!
I will try and post some chart examples here when I get some time...
