I've been following this chart, but not quite as happy with the
60 Stoch. The false Sell signal at the end of July 5 being the
biggest miss, and having one or two false crosses on both sides.
Makes it hard to pull the trigger with confidence.
How do you decide whether to exit a trade if the Stochastics
trigger crosses then reverses itself? Is there a configuration that
determines when you close the trade out? Is there a pattern you
look for where you'd re-enter the trade?
Or, would you recommend simply following the Stochastics
trigger, then just waiting for stop-loss?
Would be thankful for your thoughts when you have more time.
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How to handle false signals?
5 min SPX
Posted by sankaty on 7th of Jul 2010 at 12:34 pm
I've been following this chart, but not quite as happy with the 60 Stoch. The false Sell signal at the end of July 5 being the biggest miss, and having one or two false crosses on both sides. Makes it hard to pull the trigger with confidence.
How do you decide whether to exit a trade if the Stochastics trigger crosses then reverses itself? Is there a configuration that determines when you close the trade out? Is there a pattern you look for where you'd re-enter the trade?
Or, would you recommend simply following the Stochastics trigger, then just waiting for stop-loss?
Would be thankful for your thoughts when you have more time.