4H chart showed it was in its range area so you had an olive bar. Price will either bounce up and stay in its range or break out and go into a DT. So in its range area it gave a buy signal. When it crossed the 240 line on the 4H chart it went into a DT. 4H bar color changes to red signal it as a DT. Price bounced back up tested the 240 line and then went into a strong DT move.pgd wrote:Elexi, Nanningbob,Elixe wrote:
== extract ===
rules are now:
-- if "ranging" H4 (OLIVE or GOLDENROD) --
H1 GREEN BAR : Bid is below MA15H1 & Sto722 below 20
H1 RED BAR : Bid is above MA15H1 & Sto722 above 80
here's something for your consideration:
pl take a look at the h1 chart attached. it bears the new dummy lights.
as you can see, the h4 light is olive, price being between 60 and 240 on that timeframe.
so, one can take signals in either direction.
the h1 light is showing green which would indicate that one should be looking for a long.
however, if one looks at the way the ma's are stacked on h1 : 15 < 60 < 240,
one would be looking for a short with price rising above 15 and falling back below 15.
should the h1 dummy light not be red in this case, then.
on the other hand, if 15 > 60 on h1 while both are still below 240, one would be looking for a long each time price dropped below 15 and rose back above it. the h1 dummy light would then be green.
And, mutatis mutandis in the h4 goldenrod ranging scenario...
kindly comment.
thanks.
If gbp/usd had ranged the signal would have been a good trade but price didnt stay in its range so now it is a DT. 10.6 allows you to trade both range markets and trending markets. So it was a valid trade signal if price ranges and if it breaks the 240 line on the 4H it is a valid trend trade. If you had played the buy range trade you know to get out quickly because it went into a DT. If you played the break into a DT you had a good trade. If you played the dailyopen buy you probably are not in because the trade went below the 240 line before it went above the DO line. If you played the xxx.00 buy entrance it went about 20 pips to the good before reversing and crossing back south over the 240 line. Either way the signal is valid.
You got a signal that was valid if price ranges, it was not valid if it goes into a DT. If you played the buy tight you would have been safe with a small profit or at least BE. If you played the DT you would have been in a good trade. Either way you should not be in a loser if you brought your SL up so your winner doesnt turn into a loser.
