I’m creating an indicator that helps me see when I should consider opening a buy position. For the most part I’m very satisfied with how well it works with my system. However, the one situation I can’t get my indicator to downplay is the fake-out that happens about 1/3 down on a price decreasing slope. It reminds me of the back side of an Elliott Wave 5-3. Any ideas what to look for before or during this this fake-out? Thanks!
Hi,
I’m sure that there are many people that would like to help you out and contribute but I think a little more detail and perhaps a chart would help (I for one don’t have a CLUE as to what you’re talking about i.e. I’m assuming that by ‘fake-out’ you’re referring to ‘gaps’)???
How strong is this “fake out”? You could set higher “buy” standards on your trades so that multiple conditions need to be met before it buys. RSI and Stochastic may help, if you aren’t using them already.