Quote:
Originally Posted by BillB
Forgive me if these questions have been answered.
1. I recently read on here that the main trend change (4H cross) is invalid if the stochastic, RSI and MACD are not in the correct condition when it occurs. At least, that was my interpretation.
Does this trend remain invalid as long as it lasts?
For example, there was an upward 4H cross of the MAs on Jan. 16. On my chart, the Stochastic appears flat and the MACD was positive before and after the cross.
This long "trend" remained in effect for two days.
Should those two days have all have been no trade days?
In other words, if the 4H cross is bogus, do we stand down until another trend change?
2. I have seen it written that no trades should be taken before Midnight, New York time.
I have not seen how late the latest trade should be taken.
I have been cutting it off at Noon New York time. Is this correct?
Thank you.
PS- I got stopped out on a long trade that occurred at 0700 GMT this morning. Was there a "system" reason to not have taken that trade?
Thanks again.
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1/...in this instance no trades are taken in the direction of the MA cross (trend change signal), within the next 4 hours. If, at the end of this 4hr period, the MAs remain crossed then entries are made in that direction, as MA crosses (on the 4hr) are given precedence over the RSI/MACD/Stochastic indicators.
2/. PipSurfer suggests entering trades no later than 12 noon (EST).
PS - i'll let you work that one out