I present you a very useful indicator and I try to explain you one application for a very effective strategy based in the support/resistance. INTRODUCTION:
The I_XO have a complex formula to detect trends by analysing the previous candle close values.
Is possible to set the period (number candles) that it include in the formula.
The great characteristics are the changes of levels.
Every time the indicator changes of level the price reach a new level of price.
The interesting are the resistance/support that the indicator show when it change. HOW THE INDICATOR WORK
The indicator maintains a level until the new level is reach.
The sensibility of the changed depends from the period that the indicator analyses. For high period number the indicator detect more important levels.This is the setting:
HOW THE INDICATOR CHANGE LEVELS
ú Candle ID2 | maintain and close with last colour/level
ú Candle ID1 | start with last colour but break the support/resistance
and close with new colour
ú Candle ID0 | open with new colour and confirm the changes of colour HOW TO USE I_XO INDICATOR
Is possible to use I_XO by different mode.
However the best modes are related with t…