If I may answer. The semaphor will move if the market is trending. So you need to wait for a retrace. TRO recommends at least 5 pips from the tip of the semaphor.If the 3 is at the top of the chart, the price is coming down and if it's at the bottom, it's coming up. I checked numerous charts and see this to always be true. Am I on the right track?
his instructions are repeated in many places on how to trade the semaphor
http://kreslik.com/forums/viewtopic.php?t=1681&start=0
1) Only trade if there is a 1, 2 or 3 semafor on the current or previous H1 candle. NO EXCEPTIONS.
2) After you see the semafor on the H1 chart, look at the M15 chart for the long(light blue) and short(pink) triggers based on TRO DYNAMIC FIBS SR TRAIL indicator.
3) When price touches the trigger you enter. DON'T THINK, JUST ACT!
4) Only ONE TRADE PER M15 CANDLE. If price goes against you, just wait.
5) If price went against you and makes a new dynamic sup/res level, get ready to enter at the trigger. If you can't see how this work, then DO NOT TRADE IT. I have entered up to 3 times.
6) What's the STOP LOSS? The stop loss is your maximum allowed loss per trade based on your money management.
7) What's the TAKE PROFIT? You take what you can. I usually take 5+ pips and leave more on the table.
Try this method using a micro lot or 0.1 mini lot. Trade it this way until you feel comfortable and are profitable on a consistent basis. Just trade it, AS IS, and don't add anything to it to improve it. You'll be amazed at how profitable a simple method can be.
A few months later TRO added the Stopping Volume indicator which gives extra confirmation that the semaphor is showing a change in direction.
But that is the thing you have to be aware of is that the semaphor may be marking the current high or low point of a trend, and so you need to have your stops in mind.
EDIT: The "TRO DYNAMIC FIBS SR TRAIL" mentioned in step 2 will mark the 5 pip difference from the tip of where the semaphor is located. You can changed the settings to be larger than 5 pips.