The hiloentrysignals index is designed to detect favorable conditions for entering the market. purchase signals are shown in green, sell signals in yellow.
The index generates signals by identifying areas of stagnation, followed by a breakout, that signals a new cost direction following a possible high or low. The index isn’t redrawn.
Input parameters: Min and Max imply the minimum and maximum amount of pubs in the current bar, by the index determines the stagnation zones. The Lookback value indicates the number of pubs for which the indicator is attracted. If the indicator does not draw anything and the alert is triggered, it means that there are fewer bars on the chart than the Lookback value.
The indicator shows the best results on the higher timeframes – daily and weekly, where trades are possible with a probability of winning from 70% to 80%, depending on the traded asset. These results are based on history testing.
The indicator can also be used on smaller timeframes, for example, on a 5-minute chart for scalping. When scalping, it is recommended to filter trades, including by support and resistance levels. It is necessary to check that there is enough room for the price to move between the key historical levels of resistance and support. On lower timeframes, there will be more signals and therefore more false signals. Buying and selling on each signal on timeframes below 4 hours is not recommended.