Tony Beckwith
04-01-2005, 09:37 AM
Hi guys
A nice example here of a standard buy set-up on US stock Infineon (IFX) this week, on the close of Monday 28 March...
Everything looks right - uptrend; clean ABC correction down; in the Typical price zone; blue buy reversal bar...
BUT...our preferred trend filter - the 20 bar exponential moving average (EMA) on the weekly IFX chart - was still down at the time...
So, a set-up unconfirmed by trend...
RESULT: IFX fell Tuesday 29 March, wouldn't have been triggered long but if you're following trend you wouldn't need to waste time watching it anyway....
Thanks
Tony.
A nice example here of a standard buy set-up on US stock Infineon (IFX) this week, on the close of Monday 28 March...
Everything looks right - uptrend; clean ABC correction down; in the Typical price zone; blue buy reversal bar...
BUT...our preferred trend filter - the 20 bar exponential moving average (EMA) on the weekly IFX chart - was still down at the time...
So, a set-up unconfirmed by trend...
RESULT: IFX fell Tuesday 29 March, wouldn't have been triggered long but if you're following trend you wouldn't need to waste time watching it anyway....
Thanks
Tony.