Firstly I would like to say I like your daily charts and read them with interest. I have one question about timeframe. Is you approach to merely trade these with a stop or do you give yourself a set timeframe (depending on what timeframe chart you are looking at) before exiting the trade (especially if it doesnt work)?
to Verno
Hi,
thank you for your message. Ideally, the trade should work after the cross of the stochastic and don't break previous low/high. That is where you could have your stop. There are many other filters that you can use (trendlines also work) so my opinion is that you first work out the timeframe that suits you best (risk/reward) ratio and then choose a filter to give validity to the signals the divergences provide you.
Best regards.
Hi,
thank you for your message. Ideally, the trade should work after the cross of the stochastic and don't break previous low/high. That is where you could have your stop. There are many other filters that you can use (trendlines also work) so my opinion is that you first work out the timeframe that suits you best (risk/reward) ratio and then choose a filter to give validity to the signals the divergences provide you.
Best regards.
