Kaufman 3 indicator draws two lines on chart: white and pink. Kaufman V3 determinates direction of the trend (trend is your friend, right?): when white line is above pink line we have a uptrend, when white line is below pink line we have a downtrend. It’s easy as it is. At first glance it may look to simple but this indicator works really well as it use adaptive moving averages which respond to market changes much quicker than ‘standard’ MAs.
Below you can find rules for trading with Kaufman 3 indicator:
– open long position when white line cross above pink line and candle close above white line
– open short position when white line cross below pink line and candle close below white line