Green background: Long With green background wait for white bars to appear, once white bars appear wait for green bars and enter long on break of high or close of green bar. The stop out of trade should be a candle that closes below the pivot: it should be apparent. (Can enter long after white bars if it has a long tail Stop below the tail).
Red background: Short With red background wait for black bars to appear, once black bars appear wait for red bars and enter short on break of low or close of red bar. The stop out of trade should be a candle that closes above the pivot. (Can enter short after black bars if it has a long tail).
Hey, which indicators you use to determine the background color? Based on MA or something else?
maverickwayne
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Hello @fhenry0331
In the description you have mentioned two scenario's, one each for long and short.
I wanted to check with you on remaining two scenario's that may happen as 1min chart's are usually used for Day Trade. What if the background is RED and there's a white bar followed by green bar and bar after green bar takes out the high of green bar and rises higher. Will this also be a long entry? vice versa for short entry?
Thanks.
NYBKLYN
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@maverickwayne, no, you are then going against the trend, and trying to get a snapback countertrend trade. You might as well find another indicator that focuses on countertrend or snapback
ThatD0ct0r
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How do we know when to exit a position?
CoffeeshopCrypto
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@ThatD0ct0r, exiting is never by an indicator. you just take profit when you are enough in profit