Quote:
Originally Posted by Neo
Thanks again Yen, this totally helps me get it!
I don't mean to be redundant in asking another simple question, but I want to be sure about this. In the attached picture, you see the PSAR dots forming above the high candles, but the first 2 dots are above green candles (I put some green arrows in there to show where). Even though the trend continues downward, the first 2 candles are green...by the time the 3rd PSAR dot forms, it is a red candle and all the other indicators are in place: Is that an entry signal?--the first PSAR above the red candle?--even though there were 2 PSAR dots on 2 candles before it, but the candles were green? Or is it not a valid signal because it's not the first PSAR in the new direction?
Thanks again.
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Here's the rule directly from Ash in post #1 of this thread:
"
Sell: When the first PSAR dot appears above the candle, AND stochastic is crossing down but is not oversold (i.e. not below the 20 line), AND the AC is red, AND the AO is red, AND candle is red (bearish candle). Only enter once the candle has fully closed."
Every potential trade signal is set in motion with the first PSAR dot. If all the other indicators don't line up correctly, it's not a valid trade signal.
