[Idea] Heaven and Earth Deicing│Can it pass environmental recognition with a filter?

Hello!

This is Chiru (Kitaru).

I am always amazed by the potential of the heaven and earth's design.

In this article, as an idea

Can the environment recognition of heaven and earth's design pass through the DSATEA filter?

I will treat it mostly as a personal memo, but I would like to verify it.

【Idea】Heaven and Earth’s Deisigning (Design) │ Can the environment recognition pass with the filter?

This is mainly an idea and verification for 1-hour chart trading.

First, for the 1-hour chart trading, as part of the simultaneous monitoring methodthe daily chart environment recognition is required.

If you can recognize the daily environment, you can trade with high edge by buying on dips and selling on rallies on the 1-hour chart

This is the standard method.

Usually, when entering on the 1-hour chart

• Oscillator TF2 (4-hour)
• Oscillator DX (TF2 =4-houras well)
• Histogram (current is essential, andit's better if higher timeframes align)
• Histogram DX (4-hour)

these conditions are required.

In other wordsyou also need to look at the 4-hour chart statetherefore.

In addition to the daily environment recognition, you also need to monitor the 4-hour chart state

However, many voices say that recognizing the daily environment is difficult.

Since DSATEA’s filter can be configured with six settings, could you pass the daily and 4H environment recognition with this?

That’s what I thought.

Actually, I tried downloading and testing various environment recognition indicators,

• ADX
• RSI
• Aroon
• Moving Averages

and many others, but most claimed that if any one or two of them were present, a trend was forming = environment recognition passes

That’s what most said.

Personally, I wondered if perhaps you could do it with indicators alone without looking at the candlestick state?

Ultimately,

Could the heaven and earth indicators’ filter clear the environment recognition?

That’s the idea.

This is the current idea, but I’ll share it.

If you like, I’d be happy to hear your opinions in the comments.

Can the DSATEA filters pass the environment recognition? Current ideas

What I’m thinking now is,

the 4-hour chart trend alignment relative to the daily chart

is essential.

Additionally, adding one more from the weekly chart would increase edge.

I’ve taken hints from reports that Heaven and Earth’s users found high edge when they look at not only the 4-hour but also the daily chart in 15-minute point trades.

DSATEA Filter

• Oscillator LV2
  • Daily
• Oscillator DX
  • Weekly
• Histogram DX2ver2 Up/Down
  • 4-hour
• ADX
  • 4-hour
• DMI
  • Daily

The usual histogram is not included.

Because it pairs well with point trading, it’s intentionally excluded.

First, for the daily oscillator LV2 direction, use the 4-hour Histogram DX2ver2 up/down.

This creates a 4-hour trend state relative to the daily. (The Lime direction of the 4-hour oscillator DX is similar to the Oscillator LV2)

The image is of the 4-hour chart where Oscillator TF2 and Oscillator TF1 move in the same direction

4-hour TF2 and TF1 both trending up

By adding the lower part of Histogram DX2ver2, when the 4-hour chart clearly shows a trend, target trades on the 1-hour chart

Next is Oscillator DX. This is set to weekly.

In short, it’s the overall flow.

From the manual, you can aim to buy or sell until a cross occurs, which gave me hints.

Next is the 4-hour ADX.

This iscompatible with the 1-hour ABUDMI color-change tradesthus chosen.

Finally, the daily setting for ABUDMI.

Looking at the daily chart, ABUDMI on the daily is originally in a state from pullback to rally, which alone is a strong environment recognition tool.

Dollar/Yen daily chart — ABUDMI on daily and weekly histogram DX

I’ve divided the portion where ABUDMI acts as a filter with vertical lines.

When ABUDMI turns color-long, there are many rising candles and the candles are long. Conversely, when short, there are many falling candles and they are long.

Furthermore, by adding the weekly chart, you can filter by direction.

The confirmation of the weekly chart is the 7th daily candle, so beware

Finally

Above, I tested whether DSATEA’s filters can pass the environment recognition.

Environment recognition, personally

feels like it’s about which way it will go up or down

and since I started using Heaven and Earth’s indicators properly, accuracy has improved.

The accuracy is high, but when asked whether the current day’s candlestick moved up or down, the hit rate is about half.

Of course, there are times when the price moves strongly in the opposite direction, but the possibility is low.

Even if it moves in the opposite direction, candles tend to become small, like a winding snail

There are actually various methods for environment recognition.

From what I picked up in a book,

on weekly support and resistance, buy orders and sell orders accumulate

in other words, weekly, daily, and 4-hour TFs tend to rebound at support/resistance

so near those levels, environment recognition is dangerous.

On the flip side, for example if you’re long on daily, the basic approach is to stay long until you break below the support line.

It got a bit long, but for now, that’s all.

Thank you for reading to the end!