According to conservative swing trading: Highly Recommended mode
Only if orange (MBL) is under 40 best if near 32.
Long: If price considered oversold with support having no foreseen rejection resistance price due to downtrend (e.g Complimentary Overlay line), Long when green crosses up from under red and orange line.
In other words Long when:
The green line is above the red line
The green line is above the orange line
Short: If price considered overbought and rejected without any likely strong support due to uptrend (e.g Complimentary Overlay line), Short when red crosses down from above green and orange.
In other words Short when:
The green line is below the red line
The green line is below the orange line
Close when opposite signal is about to occur
Otherwise use an automatic or do manual trailing stop loss.
Automatic trailing stop loss, 10 pips is 100 points, referring to MetaTrader4.
Dangerous Events: Ignored long-term, higher time frame price action
Example: High Time frame allowed you to range scalp due to its consolidation stage, distribution/accumulation, you got carried away forgetting to check higher time frame market objective: Reversal or pattern breakout. You can lose plenty for neglecting to do the other part of your job.
Traders Dynamic Index has the following components:
Green line = RSI Price line = RSIPL = Improperly abbreviated by me simply as RSI
Red line = Trade Signal line = TSL
Blue lines = Volatility Bands = VBs : Upper and Lower
Orange line = Market Base Line = MBL
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Additional recommendation: 'TDI Complimentary Overlay by YardleyRosette
- As seen in chart