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(binned per thread starter’s request) MM (Money Maker) Detective
- #6,066
- Aug 22, 2019 6:40am Aug 22, 2019 6:40am
- Joined Dec 2017 | Status: Trader | 4,378 Posts
Update on midline crossings...
@bishopdotun and I have been looking at this the past few hours. We have both seen it happen -- so, it is reproducible from time-to-time. And we have an explanation.
Turns out there can be some repainting of the TMA's midline, especially in the vicinity of a large spike.
Check out the screen shot above from @bishopdotun. You can see there was a SELL at around 22 Aug 07:30. The price then appears to drop to the midline where there are two red 'x's. But the trade didn't close. Why?
The reason is because at that time the midline was actually lower and the price had not crossed it. A couple bars later there is a huge spike. The spike pulled the midline upward and the indicator then paints red 'x's. This makes it look like the midline crossing was missed, but it really wasn't. Back in real- time when the spike occurred the midline was lower and there was no crossing.
And then notice the purple 'x' -- this is the HMA transition. It detected the sudden spike upward and signaled an Exit which did close the trade and saved the day. The SELL trade closed for a small loss, but it could have been much worse if the trade had continued to StopLoss.
@bishopdotun and I have been looking at this the past few hours. We have both seen it happen -- so, it is reproducible from time-to-time. And we have an explanation.
Turns out there can be some repainting of the TMA's midline, especially in the vicinity of a large spike.
Check out the screen shot above from @bishopdotun. You can see there was a SELL at around 22 Aug 07:30. The price then appears to drop to the midline where there are two red 'x's. But the trade didn't close. Why?
The reason is because at that time the midline was actually lower and the price had not crossed it. A couple bars later there is a huge spike. The spike pulled the midline upward and the indicator then paints red 'x's. This makes it look like the midline crossing was missed, but it really wasn't. Back in real- time when the spike occurred the midline was lower and there was no crossing.
And then notice the purple 'x' -- this is the HMA transition. It detected the sudden spike upward and signaled an Exit which did close the trade and saved the day. The SELL trade closed for a small loss, but it could have been much worse if the trade had continued to StopLoss.
Update on midline crossings... @bishopdotun and I have been looking at this the past few hours. We have both seen it happen -- so, it is reproducible from time-to-time. And we have an explanation. Turns out there can be some repainting of the TMA's midline, especially in the vicinity of a large spike. {image} Check out the screen shot above from @bishopdotun. You can see there was a SELL at around 22 Aug 07:30. The price then appears to drop to the midline where there are two red 'x's. But the trade didn't close. Why? The reason is because at that...
it looked so far from the midline because the spread spiked at the point of exit.
