In the picture above can you explain the logic behind all the marking and the entry point??
PT, just attempting to summarise what you said:
1) Filter trades using moving average (18 ema or any sma/ema).
2) Dont short when multiple candles close above ema. Dont go long when multiple candle close below ema.
3) Impulse (momentum- short term trend?) is a nonoverlapping price action.
4) Range/correction is an over lapping price action.
5) Another filter is "momentum precedes price". Prior to trade set up there has to be down-side momentum in case of
short and up-side momentum in case of
long. If price action does not show momentum prior to trade set up, then let go that trade.
Here Momentum for upside is:
- bar to bar higher highs higher lows
- wide range bars, closing near high
- no big up-wick in most of the bars (i.e no bearish rejection bar)
- steep angle of ascent
- no major/complex corrections in between the impulse
Reverse for down side momentum.