Treggs, I'm sure you are one of the 5% of would-be traders...

Treggs,

I'm sure you are one of the 5% of would-be traders who'll succeed - if short time frames work for you then great.

The volatility entry criteria - 1 times ATR(21) stipulation is important for weeding out the small range days. It refers to ensuring the signal candle is at least as large as the 21 day average range.

At present ATR(21) on XJO is about 130 points, so unless a candle is 130 or more points long I don't accept a signal from it.

You'll notice on the chart that several candles meet the wick of 50% criteria but not the 130 point criteria. Usually the small range candles with long wicks don't generate a reliable signal.

Also, the liquidity is important, as instruments with relatively low liquidity can throw off lots of signal candles that meet the 50% and the ATR criterion but which lead to nothing. The more liquidity, the better the signal from this system imo.