DislikedIs this a valid sell on EU. H4 shows in down trend marked by Red vertical line in both the charts. We had a Sell trigger in M30 after some time marked by yellow line.
My only concern is that it came long after the EU H4 have a signal but as per rules is this valid?Ignored
As with any system that trades short-term retracements of long-term trends, you look at the higher timeframe first (H4 in this case) for a strong trend to establish. Establishing direction gives you an edge by reducing the noise.
You than utilize the noise that you observe in short-term market swings by looking for counter-trend retracements on the lower timeframe (M30) and a reversal back into direction of the trend. While you don't get to ride the full trend as seen on the higher timeframe, you take fairly secure trades for portions of it, and will often be able to profit from the trend more than once.
Naturally, a reversal in overall trend will show earlier on the lower timeframe. In other systems you might think about taking a counter-trend trade (for example, center-of-gravity approaches do that and bet on a reverse to the mean), but in the system in this thread you would wait for the new trend to be fully established on the higher timeframe and then additionally wait for the first reversal on the lower timeframe -- meaning you don't jump in when the H4 changes, but wait for the M30 to swing once.
If you feel you're missing out on a good trading opportunity, you could always drop down to M15 or M5 to get in quicker, but the edge of the (any!) system is to have tried-and-tested rules and stick to them, not to opportunistically adjust them -- that would be fully discretionary trading on price action, which is a valuable approach too, but not mechanical trading as described in the system.
One more thing that may have made you ask the question is about exits. In the thread so far, a couple of approaches have been mentioned. Use a hard stop at the recent swing high/low, trail profits, etc. Unless your stoploss is hit, I think there is no need to exit on each and every reverse signal on the M30, as this would pervert the intentions of the system and make the shortterm noise work against you again. I would exit if the H4 changes direction while the trade is still on, or if both signal (Heikin-Ashi) and filter (W-LNX CCI) line up in the opposite direction on the M30.