Let's analyze the technical chart of EURUSD as on 27 Nov 2010 using Doda-Donchian indicator. I've used Doda-Donchian ver 2.0 here. I'm still coding it for further improvements. Once finalized, I'll share the MetaTrader MQL indicator with you here. Just keep in touch and subscribe to newsletter.
Without going into analyzing number of lines, retracements, support and resistance, this indicator gives buy and sell signals from a single line. If the prices CLOSES below the red line, take short position, and if the price CLOSES above the red line, take long position.
I'm emphazing on CLOSING of the price and not just movement of price above or below the red line.
Secondly, this indicator gives best results on longer time frame like H4. Those who think they can make money only in M15 or M30 timeframe, just open your mind and see the above chart.
Doda-Donchian indicator gave Sell signal on 23-Nov-2010 @1.35853 and it started its downward journey from there, giving a profit of 345 pips in a matter of 4 days. Not bad at all. 🙂
Got any doubts, just mention in comments section below & please give your feedback also. Thanks