Many traders use body closes to initiate positions as well as add. I prefer using them when I an confident about a trend and want early entry in add. Actually one can take ad position below the low of the highest candle in the corrective upmove when the trend has turned down. That is a bit aggressive but will give you an early add....
ST,
Stcts settings shud b used only for 5min or even for 30 min TF ?
If It could be used for 30 min, as of 12th and 13th how would u hv traded, pls explin.
I am new, just going through this great thread. On this chart wasnt the 5 candles in OB met? When it came out of the OS area, is there not a buy signal? Would this be one of the expected whipsaws or is it that there is no signal? Could someone please check this for me? Thanks.
I am new, just going through this great thread. On this chart wasnt the 5 candles in OB met? When it came out of the OS area, is there not a buy signal? Would this be one of the expected whipsaws or is it that there is no signal? Could someone please check this for me? Thanks.
This being an old chart, I am unable to see whether the market reamained in OB region for over 5 bars....
The oscillator qualifiers say that if it is staying in OB region for more than 5 bars then selling is not recommended. But the experience has indicated that many times the upmove accelerates so we buy with close stoploss as the market can take a deep correction before resuming its uptrend. Also if market stays for 8-10 bars or more in OB zone, many times it exhausts itself and buying into extended upmove should be avoided in such cases...