[quote=olivierforex;5898801]Thanks for the extra explanations, all is clear bar the above:
1) do they have to start at the same time? NO, provided you do get 5 together..
2) or can one start before the other, in which case the first one might get to 7 or 8 before the 2nd gets to 5+ YES
3) we are talking about the opposite colour (so if we're short, we look for 2 x 5+ green bars? WRONG hereīs the confusion:
The crossing of the middle line is clear, and those AC bars will be opposite coulour to your trade, so if short, they will be green and viceversa.
The other rule (which is a Bill Williams original), is: if both AO and AC have a 5 bar (minimum ) run on the same coulour of your trade, THEN you also apply the 1 bar rule.
Why?, in those rare occasions, the market should be flying in your favour....and wonīt last too long (of course maybe), so the idea is to stay close and protect your (hopefully) huge gains.
The other rule is from someone else, I did not invent either....have a look on any TF, itīs a pretty effective trailing method.
Original basic B Williams, is just follow the red line till you get a close aginst it...you can change to the closer Alligator lines if the market starts separating too far from them, ie. itīs flying your way steeply.
Doing this will keep you going in long trends, but, will give up a lot of pips in shorter swings...as always, imposible to find the perfect solution...they are all a compromise...
Cheers
1) do they have to start at the same time? NO, provided you do get 5 together..
2) or can one start before the other, in which case the first one might get to 7 or 8 before the 2nd gets to 5+ YES
3) we are talking about the opposite colour (so if we're short, we look for 2 x 5+ green bars? WRONG hereīs the confusion:
The crossing of the middle line is clear, and those AC bars will be opposite coulour to your trade, so if short, they will be green and viceversa.
The other rule (which is a Bill Williams original), is: if both AO and AC have a 5 bar (minimum ) run on the same coulour of your trade, THEN you also apply the 1 bar rule.
Why?, in those rare occasions, the market should be flying in your favour....and wonīt last too long (of course maybe), so the idea is to stay close and protect your (hopefully) huge gains.
The other rule is from someone else, I did not invent either....have a look on any TF, itīs a pretty effective trailing method.
Original basic B Williams, is just follow the red line till you get a close aginst it...you can change to the closer Alligator lines if the market starts separating too far from them, ie. itīs flying your way steeply.
Doing this will keep you going in long trends, but, will give up a lot of pips in shorter swings...as always, imposible to find the perfect solution...they are all a compromise...
Cheers