SQZ uses an adaptive algorithm, which can adjust itself well according to the market. If you have studied the introductory model of machine learning, you should understand the linear regression model, which can predict short-term trends very well. Of course, this is only a part of the SQZ indicator. This is an indicator for understanding short-term trend reversals and works very well for tracking triggers. When the price shows HigherHigh and the indicator shows LowerHigh, there is a structural break and short selling. When the price shows LowerLow and the indicator shows HigherLow, there is a structural break and go long. In addition, the upper part of the zero axis represents the long position, and the lower part represents the short position.
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