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Your best lineup is when all are in your direction. By watching your charts a few days you will get the feeling of when a HTF is not exactly lined up but you still have a trade. Sometime in these cases the trade is short lived but you can still get a nice trade our of it.
Can you help answer these questions from other members on NexusFi?
The example you have given is extraordinary, because that spike candle causes a bit of a hickup. Normally the entry is fairly quick and not 28 min. Please remember that you are using Range bar, so a new bar will not register if there is no volatility at this point in time. As long as the setup is there you can wait, I think that 28 min is too long, so go and look for something else.
Just an observation. I looks as though one could eliminate the 1 period PPMA, to at least clear one line from the chart, as you can simply look at whether price is above or below the 3 period PPMA. That price action basically mirrors the crossing of the 1 period PPMA crossing below and above the 3 period.
A clarification on this; it appears that it's when price closes above or below the 3 period PPMA. In re-watching the webinar I noticed one place where price crossed below the 3 PPMA, closed right on it, but the 1 PPMA consequently didn't cross below, and price continued up. This was at the 1:02:20 mark, at the 18:40 bar. One might have been faked out at that point, as price dipped below the 3 PPMA and closed right on it. So, I'll say that for the most part, I've noticed that when price closes above or below the 3 PPMA is when the 1 PPMA crosses it.
I beg to differ on your observations. Never trust what you see in a candle, as a candle can start out green, and end up red, or finish up green and change direction on the next candle. The whole idea of using a SMA-1 Typical and SMA-3 Typical, is that they show us that the internal market condition is changing. Once BOTH PPma start to point in the same direction the market condition confirms the direction of the trend. There are many instances where the candles fool you and the PPma are flat in going in opposite directions even if the candle has crossed the SMA-3.
I would advise you not to trade the way you observed.
Likely he's referring to the TradeStation version of Range Bars (that are gapless). Hopefully, he'll elucidate on it, but in case he doesn't, thought I'd provide that. Here's their description: Momentum Chart