Suddenly the Sidewinder is again in every mouth after it disappeared for a while from the chat and blogs I follow.
But what is the Sidewinder? It’s a green light to take a ZLR. Simple as that.
So your Trading Plan says:
I take a Long, if the CCI hooks up from around the zeroline and the Sidewinder is green.
I take a Short, if the CCI hooks down from the zeroline and the Sidewinder is green.
The Sidewinder is a filter in your Trading Plan, keeping you out of “bad ZLR’s” or better ZLR’s with a lower probability to succeed.
Now let’s ask the 100.000$ question: Which ZLR’s have a lower probability to succeed?
… Yes, you will have to do your homework yourself. So print-out a few days of the contract you trade and mark-up all the ZLR’s you see.
(You wouldn’t believe it anyway, if I told you, that the Sidewinder is just telling you the obvious.)