What are the views about trading inside bars?
Anyway to avoid false signal?
Hello alicia19,Originally Posted by ;
I extensively tested inside bars over several markets and lots of time frames. The overall result concerning accuracy of prediction is that it is all about random. However, that's not where the value of this kind of method lies.
Inside bars, almost by definition, are relatively tiny bars, so an entrance at the same end of the pub and also a stop loss at the opposite end means you limit yourself to just tiny losses as soon as it reverses on you. In case it goes how the return:risk profile can be far better than 1:1 (because it is a small bar) and that is the place where the net profitability may come from.
Basically, it is about cutting losers short and letting winners run, only using inside bars as the vehicle for doing so. The bar in and of itself has no predictive value at all.
Could not agree more. BAS (Big A$$ Stops) price in the long term, in my own experience.Originally Posted by ;
Dont take a look at the bar in isolation. Examine the context where it's in relation to recent price action.
Knowing where to place stops is more important than having a little stop shedding.
Basically, it's about cutting winners brief and letting winners run, just using inside pubs as the vehicle for doing this. The inside bar in and of itself has no predictive value in any way. [/quote]
No indior or system cn predict the next move.
My view is to use weekly time frames to avoid too many false signals and also to know when to take profits once the price moves put you in profits.
On the chart above would not the second green candle stop out the buy with a 85 pip loss?
Sell signal legitimate for my bitcoin weekly chart.
Where to take profits when the transfer make any profits?
Problem is it takes years of knowledge and expertise to understand where to put stops.Originally Posted by ;