HI BKG,
I finished reading this thread and was doing backtest on few currency pairs.
I remember you mentioned that when the price turns back and finishes below 10sma (on a buy trade) you close the trade.
Am I correct.
If yes. What you will do in the following example.
Got a buy signal. (Price closed at above 10sma and above the support line).
Got in the buy trade.
Now very next candle it close just below the 10sma.
Questions
1. Will you close the trade?
2. Given that the stop is not hit and its just went below 10sma, will you hold the trade for one more candle.
I have attached 2 examples here.
Thanks in advance.
KC.
I finished reading this thread and was doing backtest on few currency pairs.
I remember you mentioned that when the price turns back and finishes below 10sma (on a buy trade) you close the trade.
Am I correct.
If yes. What you will do in the following example.
Got a buy signal. (Price closed at above 10sma and above the support line).
Got in the buy trade.
Now very next candle it close just below the 10sma.
Questions
1. Will you close the trade?
2. Given that the stop is not hit and its just went below 10sma, will you hold the trade for one more candle.
I have attached 2 examples here.
Thanks in advance.
KC.