glabbeek wrote:MrLong wrote:Hi Andy,glabbeek wrote:bubo wrote:
I think the issue is that often the RSI will not reach the opposite threshold but will instead reverse back. If that happens, it looks like we are still placing pending orders, even if the RSI is moving against your trading direction. Manually, I would not place pending orders anymore when RSI returns to where it came from. i would remove pending orders and wait until RSI reaches the previous threshold again, and then place pending orders.
I think this is an important issue. What I understand from Bob's thread and what seem's logical, is that if you placed a pending order and the AO or RSI go out of the trigger areas, you cancel the pending order.
This will prevent you from entering trades that are still moving away from the trend.I don't understand what you mean, can you explain, a long trade from start, then deleting of pending order.Code: Select all
if you placed a pending order and the AO or RSI go out of the trigger areas, you cancel the pending order
Thanks
Andy
Hi Andy,
I'm currently on a vacation and therefore a bit short on resources. I will try to explain what I mean.
This is from Bob's 10.4 manual.
You can see that, as you said many times before, you only need the price position compared to the 240 MA line and one of the next 4 criteria to enter a pending order. So you don't neede all of them to line up.BUY TRADES BEST CASE SCENARIO.
1. When price is above the white 240 MA line on a 4H chart, you set your pending trades with the following signal(s). The signals can be used together or separately. You do not need each one to agree to set pending trades you can go with only one signal and the 240 MA line.
2. RSI 2 is flat-lined on the bottom
3. AO is below its 0 line
4. You will be crossing the WP back into the trend.
5. AO has turned to a green bar showing an UT has started.
SELL TRADES BEST CASE SCENARIO.
1. When price is below the white 240 MA line on a 4H chart, you set your pending trades with the following signal(s). The signals can be used together or separately. You do not need each one to agree to set pending trades you can go with only one signal and the 240 MA line.
2. RSI 2 is flat-lined on the top.
3. AO is above its 0 line
4. You will be crossing the WP back into the trend.
5. AO has turned to an orange bar showing a DT has started.
When you have one of these set up's, you enter a pending order. For instance, the price is above the 240 MA and the RSI is below 2. ( flat-lined at the bottom) You now enter a pending buy order.
But what if the RSI comes above 2 before the pending buy order is filled? Do you keep the pending order, or do you cancel it? I would do the last.
I think that for a pending or to be valid you need the operators that triggered the pending order to be still active.[/quote]
Hi,
If we lay the STOP ORDER for a long trade, when the RSI is below 2 and price is above 240 ma and the RSI moves above 2.
That would tell me price is moving towards my pending orders.
Maybe I don't grasp it
Andy