DP Signal confusion

[Russell Stagg]

Steve / Tony

I am getting slightly confused about the logic of the DP signal.
Take this one on the YM - I just can't see where it's getting it from - can you enlighten me?:eek:
Ps apologies for the chart quality but my snagit is going mental today and I fear needs a whole re install which I do Not want to do just yet.
I have had my fill of software going funny this week already.
The chart is of ym 5 minutes yesterday 18:35 UK time.

[Russell Stagg]

Here's a better one.

[Steve Griffiths]

Hi Russell

First you need to turn your 2+2 Filter on............. as you say that DP is NOT valid as it is too far past the DP level.

I also suggest upgrading to the new RT build 44 that includes our improved DP logic. Yes you will get fewer automatic DP signals but they have a higher reliability

I hope this helps ?

Steve

[Russell Stagg]

Ah so ... I understand about the 2+2 and don't worry I didn't take it but
I thought that once price went beyond about 1/2 of the width of the DP zone the DP signal itself got automatically cancelled? No?

[Gepetto]

In fact, if we close above DP target, we have to come back inside DP band on the next bar, if I'm correct. But if we close twice above DB band, DP order is automatically canceled

[Russell Stagg]

My plan is to have a hard in the market stop at the outer green line on the chart - which gives me some time (usually) to make a decision if price touches the crosses.
This time I just moved it 1 tick and got nicked.
Ah the missed opportunity - this trading game is soo.... frustrating. It's all made up of tiny things.

[Russell Stagg]

In fact, if we close above DP target, we have to come back inside DP band on the next bar, if I'm correct. But if we close twice above DB band, DP order is automatically canceled

Which is why I asked Steve, I like to know how the algorithm works - I tend to run with all the filters off - that way I have to think about each and every signal - and that way I hope to become a better trader. Every now and again I get an issue that bugs me and Steve or Tony generally sort me out.

You will notice on the chart that there are quite a few historical DP signals against the trend but I find it useful to know those signals so I can make an effort to reject them. That way I am an "active " trader in the market - it's a little more stressful sometimes but better for me.

One day when I am all grown up I might just add on some of these "historical failures" but not just yet!! :)

[Steve Griffiths]

Hi Russ,

How the 2+2 filter works is explianed in this video: http://www.mtpredictor.com/members/Feb2007.html

Thanks

Steve

[gremtp]

My plan is to have a hard in the market stop at the outer green line on the chart - which gives me some time (usually) to make a decision if price touches the crosses.
This time I just moved it 1 tick and got nicked.
Ah the missed opportunity - this trading game is soo.... frustrating. It's all made up of tiny things.


Damn, it looks like TS data feed is having the upper hand vs eSignal/NT feed.
Once again I had no signal on 5 min Dax and 2 very ugly TS4 (all filters off and first one was stopped out) on 3 min, no divergence.
I would have probably trusted a TS1 much more.
Luckily I took a bit of a gamble going long on the FTSE gap down opening. FTSE tends to at least try to fill the gap and other indices started bouncing at higher time frame DPs before the 8am FTSE opening, so it was worth a try.
Without that, I would have been a very frustrated chap today.
BTW, after a good move I tend to use a 34EMA as a trailing stop and I was stopped out more or less at the same level as you.
Well done anyway.

[Russell Stagg]

Gremtp

I get the TS 1 on my IB NT feed as well.

Steve

Thanks I clearly need to review that video again.