Here is a trading system I got from another forum.
Here is what the author has to say
If you see, there is 2 lines on main chart. The one with thick line I call Main MA, and the other one (thin line) I call Fast MA.
If the fast line (thin) crossed main line (thick) and both color is red, you go for SHORT. Check also xb-ind (seems like MACD) also in red color.
So basically you go short when all is red and go long when all is blue (check if fast MA on top/below Main MA).
You can see also some “reseversal line”.
When the market sideways, normaliy price is always bouncing. So, if the price is bullish then will predict the price will reverse at line and the price will change to short. Remember, this is only prediction. If the price still bullish, it break the “break out line”. The we now the bullish trend has been set.
Also, you can use reversal line when two lines has different color. For example when the main line is blue (long) and fast line is red (short) and fast line on top of main line (So main trend is bullish). We can predict that price will drop and touch around reversal line and bounce back for bullish.
Hope this helps
