This is a copy of a TRO post on TS.
Read the trend page and you will see how he created and learned to use the SR.
96 Pages LOL
https://www.tradestation.com/Discussion ... 776&Page=1
MINI GRIDIRON II LESSON
The _SMAA_DYNAMIC_SR, formally PUSH HILO, is effective across all time frames... if anything, the longer the better. I'm just a scalper at heart.
90%? Look at the charts...
First, you must determine the overall trend direction . How? LOL... You can use the TREND and COMPASS indicators on 15/60 minute and daily intervals. Notice on my chart the ema(5) is plotted (dark cyan line). NEVER TRADE AGAINST THE EMA(5) DIRECTION... NEVER!!
Next, you only trade in THAT DIRECTION! GOOG was trending DOWN on Friday. There was money to be made off the long bounces but why take unnecessary risks? Greed? So GOOG was a short when the ema(5) was heading south.
So if you sold at the RED dots and covered at the BLUE, you should not have missed. I was calling the play by play on GOOG in the afternoon and every 10 - 20 minutes there was a short worth at least $2 a share. I just waited for a fib retrace and/or dynamic resistance hit.
If you jumped the gun and shorted BEFORE GOOG retraced up to a pivot, your p/l showed some red (temporarily). If you waited for the RED DOTS to plot horizontally instead of stair stepping, your account would be a lot richer!!
Once again, if you look at your past trades using the Dynamic SHOWMEs and GRIDIRON_II indicator, you will see why you made money and why you lost money on the trades.
Does this make it any clearer?
Do you understand?