【Daily Chart Environment Understanding】Two patterns tested: "ADXDX" for the sky and ground, and "Osime + Hist Gray Lime"
Shiro is here.
In this article, I would like to conduct a test of environmental recognition.
This time, there are two patterns to verify.
- ADXDX two lines and ABUDMI
- Direction of the Oscillator histogram DX Lime direction
After daily confirmation yesterday at 6 PM, I noted the directions of environmental recognition for both, and tested what happened the next day.
【Daily Environmental Recognition】Heaven and Earth Deiswing “ADXDX” Verification
Sorry for my letters being so messy even I am surprised
Method of environmental recognitionis as follows.
- ADXDX second line (after one candle is confirmed)
- ADXDX is lit and the second thick DMI line
I also tested 29 currencies including GOLD, plus Bitcoin, Ripple, and LTCUSD.
Judgement methodis simply
Regardless of the candle length, if the candle direction matched, mark 〇; if the candle is bearish, mark ×
and so on.
Test results
| Currency pair | Judgement |
|---|---|
| AUDCHF | 〇 |
| AUDJPY | 〇 |
| EURCHF | 〇 |
| EURNZD | 〇 |
| GBPAUD | 〇 |
| USDCAD | 〇 |
| LTCUSD | × |
Almost all were correct, only LTCUSD was ×.
ADXDX’s second line accuracy is phenomenal.
Next, the direction of the Oscillator and the direction of the histogram DX Lime.
【Daily Environmental Recognition】Heaven and Earth Deiswing “Direction of Oscillator Histogram DX Lime” Verification
This one has more tradable currencies.
Method of environmental recognition
Environmental recognition involves,
Consistency between Oscillator direction and histogram DX2 (Lime direction)
Judgement method this time isusing real-time histogram DX2.
Judgement method
As usual, if candle direction matched, mark 〇; if not, mark ×.
- What does the notation (D1 R) mean?
D stands for daily, and R stands for Resistance line, meaning that we are near daily support/resistance (the possibility of a bounce).
Results of the test.
For 29 currencies plus Gold and Bitcoin,
there were few misclassifications, so I will only show currencies that went in the opposite direction.
- AUDNZD – Short
- EURUSD – Short
- EURGBP – Short
- GBPCAD – Long
- XAUUSD – Short
On this day there was the NZ interest rate release, which was predicted to be low,NZ-selling tendencywas strong.
The indicator I use (economic indicators) occasionally bugs, so NZ rate was not displayed and I skipped it.
If it had gone in the opposite direction, it would have been dangerous.
Summary
Let’s summarize.
For those who want to improve accuracy
→ADXDX second line (after one candle confirmed), or ADXDX lit and the second thick ABUDMI line
For those who want to increase the number of entries
→ Oscillator + Histogram DX2
Personally, I think both are advantageous, but for beginners, ADXDX is easier to understand and more reliable, so it might be better.
However, the second line of ADXDX is real-time candles, so it may disappear midway.
Care is required, indeed.
Personally, I think it would be even better if Oscillator + Histogram real-time are confirmed as well, and the histogram confirmation is good too.
Recently, I have been using a method where I place a daily Oscillator and daily Histogram DX2 on an hourly chart.
If both match, I treat it as a Multi-Time Frame (MTF) clear, and the win rate is good.
Can beginners use Heaven and Earth indicators as standalone?
Oscillator is part of the Heaven and Earth indicators themselves, so users of the standalone Heaven and Earth indicators can also use this for environmental recognition.