Understanding the CHO Smoothed Arrow 2 Indicator
The CHO Smoothed Arrow 2 indicator is designed to give you a visual cue when two key lines—the 'CHO' and 'Smoothed CHO'—intersect. What’s neat about version 2 is its more rigorous signal validation: a 'BUY' signal will only appear when the lines intersect below the zero line, while a 'SELL' signal will show up when they cross above the zero line.
Figure 1. CHO Smoothed Arrow 2
Keep in mind that this tool acts as an oscillator, and you have a couple of strategies at your disposal:
- Utilize an additional filter from a trend indicator to confirm signals.
- Take a position with each signal that the indicator generates.
Comments 0