Japanese legendary day trader's indicator "InariN" .
"N jijii " introduced this original indicator at his ebook and I made it simple for my own use . This is not original type but I picked up essential elements to practice his idea . I guess he is real forex day trader and "InariN" is similar to "Ichimoku" .
I have used this at EUR/USD 5 minutes chart for several months and I get basis for judgement . This is not a magical tool but you can make good reference point to use this .
I think " I " means first swing , " nari " is " become " and " = " , and " N " is third swing . For example , look at chart , AB is first swing ,BC is second and CD is third . In many cases ,AB = CD and it called measured move .
"InariN" provide reference point to decide always-in ,entry point , entry timing and exit point.
1. "InariN" is a trendfollowing tool , you can judge bull or bear by a few lines . 25 ema represent short time frame , 49 (about 4 hour bar at 5 minutes chart ) is middle time frame and 217 (about 18 hour at 5 minutes chart )is long time frame (preset periods is "N jijii" style . please use favorite time frame ). For example , when current price is above 25ema ,49ema and 217 High-low band"s middle line , market is strong bull . So you can do multi time frame analyze .
Hint ; you also have to check daily chart's trend .
2. Every line provided by "InariN" tends to become bull-bear battle point , so you can easily check where is support and resistance line .
Hint ; Especially 25ema is important to pullback entry in trend and 217 high-low line is important to do fade trade in range and reversal . You have to wait entry until touch and stick lines and follow winner (to avoid failed breakout check shrinking bar) .
3. You can also use lines to except exit point because high-low band is symmetry .
Hint ; I recommend use custom fibonacci retracement tool to measure Risk-Reward Ratio and exit point . I customized fibo tool to be symmetry . Entry point ,exit point and loss cut point became symmetry and you can add other symmetry points more . For example , look at chart , blue lines is fibo tool and you can measure exit point .