The EEdge-LRE Indicator
By analyzing short term price and combining it with a time element, the EEdge-LRE indicator attempts to plot "Low Risk Entries" in the direction of the prevailing trend only. This timing then automatically plots an arrow on the screen (bullish or bearish) real time to identify not only the "where" of the possible entry but the specific "when" of the potential entry. When applied as a part of a complete trade plan along with the rest of the EEdge Indicator set, this information assists in identifying a great "filter" to minimize the dreaded "overtrading" syndrome faced by many amateur traders.
Investopedia defines "Entry Point" in the following way:
- entry point : "The price at which an investor buys an investment. The entry point is usually a component of a predetermined trading strategy for minimizing investment risk and removing the emotion from trading decisions. Recognizing a good entry point is the first step in achieving a successful trade."
The last sentence of the definition above from Investopedia bears repeating here: Recognizing a good entry point is the first step in achieving a successful trade. A lot of work and a complete trade plan should accompany the ability to identify quality entries. The EEdge LRE helps enforce some of this work by plotting an upward or downward arrow in the area where a pullback or bounce occurs in the direction of the short term trend. This indicator is based on price action and time and plots the optional entry real time, above or below the bar where the entry conditions are being met at the time. This indication will "flash" on and off as the conditions are validated or rejected until the bar closes and locks the entry on or off, depending on the final conditions. This gives the trader the most up to date information as the trade setup is forming, not waiting until it has past like many "lagging" type indicators.
Though this is indicator is recommended to be used in combination with other signals from your trade plan it is specifically designed to be complimentary with the EEdge Indicator set, especially with the EEdge-Trend indicator, which is one of the reasons this indicator is packaged with the EEdge-Trend indicator at the moment (may change in the future and be offered independently).
So in short, this indicator keeps me on the right side of the market and avoid the oncoming train. Quite an accomplishment for an indicator... Combining this indicator with the other complimentary EEdge Indicators increases the power of EEdge-Trend even more!
...part of the EminiEdge 5 Step Plan to Trade the Emini S&P...