When close and reverse signals are generated intra-bar: how to trade them?


Junior member
12 0

When trading a 'close and reverse' system, as far as signal generation goes, what is your preferred method for handling a 'close and reverse' signal within the same bar? I have highlighted a few examples of when this would happen using the trailing red line as an example for generating trade signals.

The perils of trading a 'close and reverse' signal within the same bar is that false signals can be generated, according to the intra-bar movement and this could lead to several false trades.

A simple solution would be to trade at the open of the next bar although that would be too late in the example I have used.


Thanks (y)
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