[Argument/Reason] Explanation of why the sky-and-earth line rebound trading works well with the Oscillator TF2 LV2
Shirou here!
In the Heaven and Earth series, there have been more and more rebounds trades from the Heaven and Earth line.
When the higher time frame trend and direction align, the current candle tends to rebound from the Heaven and Earth line.
This is a property you can expect.
If you look at the indicators carefully, in most cases
rebound from Oscillator TF2 LV2
and
why Oscillator TF2 LV2 is effective?
I will explain the reasons behind this.
Why the Heaven and Earth line rebound trades work well with Oscillator TF2 and LV2

Heaven and Earth line rebound trades requireOscillator TF2 LV2 is an absolute conditionas well, I feel.
From the image, it should be easy to understand.
AUDCAD 15-minute chart Oscillator TF2LV1

AUDCAD 15-minute chart Oscillator TF2LV2

When there is a Heaven and Earth point to the left of center (green),
- Oscillator TF2 LV1 (upper image) is still green and continuing
- Oscillator TF2 LV2 (lower image) has already turned purple
Oscillators react faster at LV2, so when they move below the Heaven and Earth line as in the image, the color tends to change more easily.
In other words
- Trades from point to point on Heaven and Earth pair well with Oscillator TF2 LV1
- Trades from the Heaven and Earth line rebound align well with Oscillator TF2 LV2
that’s how it works.
Oscillator TF2 LV1 tolerates up to the point

Oscillator TF2 LV1 easily tolerates up to around Heaven and Earth point 2 level.
If it goes lower than that, the color finally changes.
Not during a strong trend,the advantage and characteristic of this oscillator TF2 LV1 is that it tolerates deeper pullbacks and retracements
.
Personally, I think this point tends to be a deeper pullback/buy the dip or a deeper retracement to sell the rally.
Therefore, if the higher time frame context is correct, there is often no need to test further lower (or higher) and it tends to move strongly from here.
Oscillator TF2 LV2 does not tolerate up to the point

Conversely, Oscillator TF2 LV2 does not tolerate the point, and when it goes against the Heaven and Earth line, the TF2 color is likely to change.
It is compatible with strong trends and good with line rebound trades
in other words.
In terms of imagery,
- First successful pullback/retracement at the point of Oscillator TF2 LV1
- Then, it tends to move more on the line rebound trade of Oscillator TF2 LV2

There are times when a clean trend reversal occurs.

Summary

The latter part may have been a little difficult.
I’m not sure if I expressed it clearly or if it will be understood.
The latter part includes my personal views, so it is not something you must memorize.
This time,
understanding the differences between Oscillator TF2 LV1 and LV2 can help you trade the Heaven and Earth series more easily.
.