DislikedHi Piptrees - If you're stopped out before the reversal bar closes you must wait for a new setup bar - not go straight back in.
And yes again - the market can go further down before it goes up so the orders could be trigerred in the wrong order.
I've not seen any reason other than this, and that we only look at the chart every 4 hours but if the market has moved that far up and down in one period it could suggest instability / whipsaws which we don't want to be in!Ignored
Thanks for your quick response on this. But the rule below clearly states that once we get stopped out, we immediately put in the order to go the opposite direction. The rule in question is:
3.) Lets say you got a buy signal and price went 80 pips in your favor and then went against you and stopped you out, at which point you reversed the trade according to the rules. So where would you put your stop? Your stop would be placed 5 pips above the high from when you got in the trade. If you get stopped out of your reversal trade you do not put another reversal trade in the market.
Any thoughts on this? Thanks again cos I am in this situation right now!