IgazI wrote:THEDOMINICANREPUBLIC wrote:If are expecting a reversal, what signal would you use to enter and exit your reversal ?
I will enter as price reverses down through the high points, with red weekly candle color, keeping in mind that if there is a reaction near the 40 SMA then price is likely to continue (bounce) rather than reverse (close over).
Timing your entries with the cross ensures a better signal: for instance, if you look at the M30 then you wouldn't go short through the green line until price dragged the SMA past the line marked '6' so that there would be a better chance of crossing both the line and the SMA; if price continued downward and the SMA flattens out and starts to reverse then you would take the next lower green line as price will have met your criteria.
On the 240 chart we have a double pointy place that lines up with an SMA cross so there is a valid signal at '1' or I could take the candle color at '0' as weekly color can stand on its own.
On the M30, if you have weekly color at the first green line then then you didn't have it at the 2nd or 3rd or if you had it at the 2nd then you didn't have it at the 1st and the 3rd, etc; candle color will automatically filter out trades that are against "the direction of profit".
Trading the weekly SSG I will risk up to 1 line to make 0.75 (price touches +1 and reverses) or more lines:
If the lines are 40 pips wide and I exit early, due to an M30 reason, for -8.5/40 pips then that is -0.2125 lines or ~1/4 of a line.
The next weekly candle can only be shorter or longer than the prev. one so looking at the weekly chart we might guess that if it is shorter then it is going to line #2 and if it is longer then it has to go to at least line #4 or 5.
Trade what you see & don't trade what you don't see.
Buy from areas where you see buying & sell from areas where you see selling.
Risk lines and make lines.
Take what you can according to the clues (ATR, statistics, etc).
This is a mashed potato strategy made from several threads.
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