One trick that I've learned that has added tremendous value to projects I undertake is to leverege the power of simplicity. In this weeks chat, I discuss how to look for relationships between technical analysis studies.  It's the relationships, more than the formulas by themselves, that help you identify trading opportunities.  Some of these studies, like the beautifully simple but extremely useful MACD, incorporate this concept into the formula directly.

The strategy attached below uses this concept to combine a simple MACD filter, that classifies bullish and bearish trends, with an RSI trigger, that scans for reversions back to its mean.  I use the mean in the sense that I want to know "what is the typical value, and how does the current value compare with that value".  The trigger is based on reversion back to the mean, which signals that a trading opportunity has presented itself if the underlying trend does indeed continue.

I advise running this strategy in Trade Optics and applying further confirmation to the signals.  The idea behind this strategy is "trade idea generation".  By scanning for relationships that are not so immediately obvious, the system can present you with ideas you may not have otherwise considered.  Finally, you can expand on these ideas to further refine the filters and triggers, and combine it with other techincal analysis.  Remember - keep it simple YET sophisticated!

Great Trading,
Bryan