On BPSPX Renko chart, how do you respond to a one day down
signal (whipsaw) after a new buy signal? This happened after the
most recent buy signal. I'm just wondering if I am able to trade
with this system and how to best handle the whipsaws. Thanks
I don't see where you are talking about. Aug 26th where you see
a down bar, that was not a sell signal, price still above the PSAR,
and MACD didn't cross.
remember these systems are not full fledged systems, consider
them skeletons of of ones, best to use other filters and charts for
confirmations, early buys, early exits etc.
also my comments last night about using normal candlestick
charts, to set your higher low stops, similar to the PMO system
chart
Okay, I wasn't understanding it that way; just thinking
the renko boxes were the only thing that was creating and
maintaining the signal. I get it now that you said the MACD
and PSAR are part of it. And, yes, I agree the entry is a little
late so it could be used with some other type of shorter term
signal. But overall it definitely is a great tool, especially for
intermediate term trading.
what I suggest for anyone thinking about trading SPX based on
the PMO or BPSPX charts, spend a weekend and go back 5 - 10 years,
look at every year, go over every single signal from the past 5 -
10 years, put them down in a spreadsheet. Get a handle for how the
trades do, and the whipsaws. Then you can get a better idea of how
they behave, and will help you come up with filters, rules, other
things. You won't get a good feel for them unless you do the
busy work like this.
and regarding Bullish Percent charts, remember they are going to
be slow to respond at times because of their nature, that's why
it's best to also reference a normal candlestick chart IMO
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On BPSPX Renko chart, how
Posted by cozz101 on 17th of Sep 2019 at 10:35 am
On BPSPX Renko chart, how do you respond to a one day down signal (whipsaw) after a new buy signal? This happened after the most recent buy signal. I'm just wondering if I am able to trade with this system and how to best handle the whipsaws. Thanks
https://stockcharts.com/h-sc/ui?s=%24BPSPX&p=D&st=2018-05-01&id=p25723016566&a=642617270
I don't see where you
Posted by matt on 17th of Sep 2019 at 11:29 am
I don't see where you are talking about. Aug 26th where you see a down bar, that was not a sell signal, price still above the PSAR, and MACD didn't cross.
remember these systems are not full fledged systems, consider them skeletons of of ones, best to use other filters and charts for confirmations, early buys, early exits etc.
also my comments last night about using normal candlestick charts, to set your higher low stops, similar to the PMO system chart
Okay, I wasn't understanding it
Posted by cozz101 on 17th of Sep 2019 at 01:16 pm
Okay, I wasn't understanding it that way; just thinking the renko boxes were the only thing that was creating and maintaining the signal. I get it now that you said the MACD and PSAR are part of it. And, yes, I agree the entry is a little late so it could be used with some other type of shorter term signal. But overall it definitely is a great tool, especially for intermediate term trading.
what I suggest for anyone
Posted by matt on 17th of Sep 2019 at 11:34 am
what I suggest for anyone thinking about trading SPX based on the PMO or BPSPX charts, spend a weekend and go back 5 - 10 years, look at every year, go over every single signal from the past 5 - 10 years, put them down in a spreadsheet. Get a handle for how the trades do, and the whipsaws. Then you can get a better idea of how they behave, and will help you come up with filters, rules, other things. You won't get a good feel for them unless you do the busy work like this.
and regarding Bullish Percent charts, remember they are going to be slow to respond at times because of their nature, that's why it's best to also reference a normal candlestick chart IMO