Hello all of you :clap:
I am trying to build a trading strategy which contains Williams %R 14 and Williams %R3. I found plenty of signals most of which I am happy with. I am running candle by candle back test with MAE and MFE.
Now my problem is that I can not find a proper way to understand a false swing. It is a good signal especially in trading market and good place to go in. I use W%R14 as a indication if the trend is likely to continue and W%R3 as my trigger indicator. If W%R3 can not go all the way down in uptrend and W%R14 is overbought W%R3 will create a falls swing.
But what if the W%R3 create a mini divergence as pictured in my attachment?
If anybody has a good way of describing a falls swing please let me know.
Many thanks
Meo
I am trying to build a trading strategy which contains Williams %R 14 and Williams %R3. I found plenty of signals most of which I am happy with. I am running candle by candle back test with MAE and MFE.
Now my problem is that I can not find a proper way to understand a false swing. It is a good signal especially in trading market and good place to go in. I use W%R14 as a indication if the trend is likely to continue and W%R3 as my trigger indicator. If W%R3 can not go all the way down in uptrend and W%R14 is overbought W%R3 will create a falls swing.
But what if the W%R3 create a mini divergence as pictured in my attachment?
If anybody has a good way of describing a falls swing please let me know.
Many thanks
Meo
