The three in combination seemed to indicate bias was up (especially the VIX which was poised for another leg down -- even at these extended levels), and I felt the 1-min 3 Line Break would be a decent stop trigger if it reversed back down ... which it of course could have.
Just thought I'd post a picture.
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3 comments:
Hi Don
By scalping do you mean few points or ticks?
And what is 1min 3line break?
Thanks
Tom
Your afternoon trade makes a lot of sense especially after getting a visual of what you were looking at. Have a great evening! traderboy
Hi Tom.
Today until the last sequence, I was keeping a fairly tight leash taking 3-6 ticks or so.
Steve Nison has some good stuff on 3 Line Break (or Point Break as ESignal calls it) in his Beyond Candlesticks book or you can search the web for some good definitions. Essentially, it's a trend detection chart that requires a period close below (for existing uptrends) or above (for downtrends) 3 prior bars to indicate a possible reversal. The bars aren't time specific (only price matters) so as long as the period doesn't close as stated above, the existing trend is considered to remain in tact.
I use it only in conjunction with other indicators to help decipher what's happening, and find it a decent complement to Moving Average indicators.
Don
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