equtrader

If you know market pressures and context you do not need any indicators. The point in using indicators is that they are supposed to include all that and assist in generating automated systems.

Is anyone here using this indicator ? I would be interested in disccusisng findings and ways of best use.

"Although the amount made or lost on any given day will differ depending on how far from its open the session closes, over time (or large sample size) this should become insignificant, as small losses will negate small gains and large losses will negate large gains." I'm not sure about this statement. If the game is rigged to your disadvantage then this may not happen. IMO it depends on the distribution function. If it skewed positively then you have a chance of making money with random trading. This article that was posted before is about the positive skew of SPY and the high chance of profitable random trading in that market. The problem is that distributions are known after the fact.

Probably around $1350 there will be a lot of selling and new short positions.

No difference. Money is money.

One black swan event like a flash crash or anything can mean disaster.

Try to be original. Only then you will succeed.

The trend is your friend and currently it is down.

Stop arguing about math and fighting and concentrate on learnign how to trade because trading is an empirical thing.

But many gamblers in the markets make money, many more than systematic traders according to this analysis and provided it is correct.

This is called reversing the burden of proof:) I see however that many are turning to trend trading maybe because it is hard to compete with robots in hft domain.

Trading is math and statistics and a share of good luck. Any other approach is doomed to fail and 95% of traders will fail because they don't understand math and statistics.

I would prefer some backtesting results. Charts can be misleading.

Same here. It would be interesting to know.