If you're already in a trade but you get a signal for a trade going in the other direction, what do you do? Ignore the signal? Close the trade and stay out? Close the trade and go the other way? Or stay in the trade and still go the other way?
Opposite Signals
- Thread starter brewski1984
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most of the time id close and go the other way as the way I trade the latest signal is always the strongest. what do you mean stay in the trade and go the other way?
That's what I would tend to do.
If you have a trade open with a decent size profit you could play both ways? I guess that implies longer/different timeframes here though. I don't do that but it was just an option for what other people might do?
If you have a trade open with a decent size profit you could play both ways? I guess that implies longer/different timeframes here though. I don't do that but it was just an option for what other people might do?
Classic response would be stop and reverse but it doesn't feel right if you're saying the switch is immediate - i.e. your TA fails to indicate an exit signal before the reverse sets up, and there is no time delay for confirmaiton on the new direction.
Its have "confirmed" that its an opposite signal, then logically, I would exit and trade the other direction. That's when we are trading with current price action. There are other factors as well, such as are you trading with a major trend in the background. If you are, you might just want to ignore a little direction in the opposite.
One falls back onto a directional bias within the pair. Other than that, one doesn't know what they are doing.
