DislikedSorry. I am a total beginner in this system.
Does that mean, say its a short trend, two bar rule indicate that it takes 'two large bars' being two green bars to touch the 10MA?
Thanks and sorry.Ignored
Yes, that's exactly what it means, it sets the standard for an ideal "by the rules" trade, meaning that whenever this condition is not met the probabilities of your trade will decrease in some level... that doesn't mean you won't find times when rule wasn't met and the trade would've worked. But you must remember trading is a probability bussiness and we must do everything in our hand to increase our probabilities.
So here's a graphic example of a perfect by the rules 10 EMA touch trade, notice too how the more times 10 EMA has been touched, the probabilities of our trade being succesful decreases, that's why it's recommended to take first or second touch of the 10, not further touches...
Hope this helps!