The light bulb is flickering again...
Top green horizontal line is midpoint of bar range. Yes/no??
Bottom green horizontal line is low of bar
Price has to drop through bottom green line for it to go lower so... above that line means price is going up.
The area between the midpoint and the low is the "space" - Is that right, MO??
Step 2: define trigger IS THAT THE TOP GREEN LINE??
Step 3: price touches the trigger
Step 4: go long.
The bottom green horizontal line would have been the line that was drawn before the close of the last bar.
As soon as the low is broken then you are looking for longs above or shorts below the green line.
00, the green line, is the bias line (00 is the only line that can be a long or a short trigger).
"Space" is a percentage of the weekly range and is projected up and down from the bias line; smaller spaces are triggers and larger spaces are targets (although they can be triggers if you are sized to the larger chart).
After the candle closed up, price broke through the high and now we are long above and short below that green line.
The "spread in lines" should always be less than .5
I use a short term bias line (daily open, holo, whatever) when price escapes the monthly bias (as it should) and I want to trade the reversal or simply want to have more confidence in the continuation.
The entry strategy is pretty much the same as SweetSpotGold.