Hi,
I don't know if this has been discussed in this forum, I didn't find any posts on it. I am wondering if anybody has ever tried the "Anti" pattern used by Linda B. Raschke. The system was thought for scalping, but it can be applied on many timeframes and pairs. The setup seems to be working in most cases. Here is how it works for a buy signal:
- %D has established a definite uptrend
- %K has begun to rise along with the slow line
- a retracement causes %K to pull towards the slow line
- enter when price action causes the fast line to turn up once again in the direction of %D (forming a hook
- stop level: just below the bar of entry (can also be the last swing low)
- exit level: within 2 to 4 bars
Rules are opposite for sell signals. The system has been described here and updated in the "Stree Smarts" book. Here is an example:
http://i40.tinypic.com/2dw6o0l.jpg
I would personally add a 50 EMA filter to weed out bad signals (only long signals if the slope of the EMA is going upwards and only short signals for the reverse), but there doesn't seem to be many.
I don't know if this has been discussed in this forum, I didn't find any posts on it. I am wondering if anybody has ever tried the "Anti" pattern used by Linda B. Raschke. The system was thought for scalping, but it can be applied on many timeframes and pairs. The setup seems to be working in most cases. Here is how it works for a buy signal:
- %D has established a definite uptrend
- %K has begun to rise along with the slow line
- a retracement causes %K to pull towards the slow line
- enter when price action causes the fast line to turn up once again in the direction of %D (forming a hook
- stop level: just below the bar of entry (can also be the last swing low)
- exit level: within 2 to 4 bars
Rules are opposite for sell signals. The system has been described here and updated in the "Stree Smarts" book. Here is an example:
http://i40.tinypic.com/2dw6o0l.jpg
I would personally add a 50 EMA filter to weed out bad signals (only long signals if the slope of the EMA is going upwards and only short signals for the reverse), but there doesn't seem to be many.