Sunday, January 14, 2007

Part 18 - What colour candle

This is a very simple section we want to go short on a red candle and long on a green candle.I have a timer on my chart timed in ticks ( you can see this on my example chart below) .My chart is an 89 tick chart

I therefore know when my timer reads 50% I have approx 44 ticks left to fill on the current candle.When my timer reads 90%, if I have a valid signal I enter my trade.
I personaly do not wait for the bar to finish.

See the chart below it shows a very good example of why we should short on a red candle and visa versa for longs .
I should stress that this type of set up does not often occur but we have to be ready for it.


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