Vegas 4H, Question about Weekly part

Thank you everybody for answering my questions as I try to figure out the Vegas 4H model..

I had a question concerning the weekly part of things..

If the 5 is running away from the 21 on the weekly chart, then we are in a confirmed strong trend, and I trade on that side only on the 4H chart. That part I got.

My question is, what if the 21 is catching up to the 5? I mean, what if the market starts to stall in the weekly? Do we just then sit back and wait again, or do we still trade on the same side, but more cautiously?

When a market is about to reverse, the 5 should be running into the 21 and then crossing over and establishing a trend in the other direction. My question is, do we trade during this time?

Thanks!

twoblink,

I'm surprised no one ever responded to this post - as I work with the 4 hr method similar questions arise. What DO we do if the 5 stalls or slows down? Price could still be rising (or falling if a bear move) while the difference between the averages is shrinking. A cursory examination of charts for the last few months would seem to indicate that we should be looking for an actual reversal by the 5 as a signal but then why didn't Vegas say it that way instead of all the stuff about "slope"? I'm confused...

Lou G

Hi Lou,
I give a detailed explanation of the weekly momentum trend in post 381, 382 & 383 of the Lost in the Tunnel thread. Go to this link to read all three posts.

As you read them, please keep in mind something that Vegas told me. Discretion MUST be used during trend changes because of the lag of the momentum indication.

http://www.forexfactory.com/forexfor...rend#post50423

Hope this helps.

Dial

Thanks, that helps a great deal.