This strategy find 2 candles, when last bigger then previous one. This is a good signal which can mean that trend can change. Using it you can find good positions to trade or just to watch out.
This is very interesting tool with lot of setting. Fist of all: you can see red or green arrows of different ways. That means that this signal good or bad (end with profit or loss, depends on expiration time). This is usefull to see different situation on history.
One more thing – good or bad – its all about the result of trade. For example, after signal and expiration of 3 candles, if signal became green, that does mean that this signal was good and if you opened a position it will be closed with profit. Of course this “good” signal will appear only after some candles (3 candles in this example), depends on your expiration time! This results don’t redraw signals, it draws one more arrow above signal one.
Next: You got expiration settings in this pannel. Changing it you can see different results of your trade.
Another settings of min, max and before allow you to find most profitable way of using this indicator. Min and Max are % of minimum and maximum absorption.
100% + min
100% + max
Before – number of candles before signal, meaning the same color. (zero candles will count, mean nobody candles!)
Then you can see some buttons. They allow you to Invert all signals, consider candles with no body, consider absorption in 2 candles and count equal stakes as positive (for default it is negative).
Then you got some statistic, especially winrate and number of stakes. Num of stakes – number in last “Candles” (200 on last screen). Then you can see some details about “buy” and “sell” signals, its number and positive / negative ones.
Candles – means number of candles to count negative and positive results from, winrate and bottom statistic.
On bottom you gonna see statistic for martingale and anti martingale strategies. Will be usefull if you use them.
You can also collapse this panel and just watch the signals.
All in all it is very useful indicator and you can use it in your analyze.