Hi Everybody,
This is question I get a lot – what do I do when in a trade and I get a signal in the “opposite” direction. The 3min Russell (TF) Index on Friday was a good example of this. As you can see, we had a good looking TS3 sell, and you would have been short, but then a TS2 buy appeared at 11:00EST. So what do you do ?
Well, I always see that you try and stick with the original trade unless there is a very good reason to change. I.e. you are trying to stay with the strongest trade based on the larger degree trend.... Sometimes this is easier than at other times. For example here, the trend was nicely down, and the TS2 (although on a black STF) was not a “obvious” ABC correction so was not a “good enough” reason to sway from the current TS3 short trade.
BTW, “if you had have “stopped and reversed”, the TS1 sell later would have got you back short again, so in this example it would not have made much difference.
Thanks, Steve
This is question I get a lot – what do I do when in a trade and I get a signal in the “opposite” direction. The 3min Russell (TF) Index on Friday was a good example of this. As you can see, we had a good looking TS3 sell, and you would have been short, but then a TS2 buy appeared at 11:00EST. So what do you do ?
Well, I always see that you try and stick with the original trade unless there is a very good reason to change. I.e. you are trying to stay with the strongest trade based on the larger degree trend.... Sometimes this is easier than at other times. For example here, the trend was nicely down, and the TS2 (although on a black STF) was not a “obvious” ABC correction so was not a “good enough” reason to sway from the current TS3 short trade.
BTW, “if you had have “stopped and reversed”, the TS1 sell later would have got you back short again, so in this example it would not have made much difference.
Thanks, Steve
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