Forex Hanging out the daily on the close line

Hi all.

I had an idea early this morning while awake in bed, (probably not the best time lol) I thought of placing a series of 1SMAs on a chart, settings as follows, high, low and close. Then put on a line chart with no colour.

We then watch for the close line to touch one of the other lines, at which time we switch from line to bars and trade the opposite of the colour of the candle that touched the outer SMA. (See charts)

One exception is if the touch occurs when the outer SMA is moving towards the close SMA (see charts, orange dotted lines}

I am using Gold daily chart for the example but any chart or TF should work. I am going to study this further, live when the markets open...anything can look good in hindsight. The nice thing is, it looks like a setup has occurred on friday close so we will see on Sunday.

Chris

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