Hi Roberto
maybe I didn’t explain it correctly .
level A triggers looking for an EMA cross over .
if BEFORE this cross over occurs it breaches level B Then the trade is invalid and no trade must occur .
you can clearly see from the screen shot that code is placed live then level A is hit then level B is breached before an EMA cross over so no trade should happen .
You are correct the cross over is in the range a-b but that should be irrelevant – the cross over CAN occur even above level A if price retraces after hitting level A as long as level B is not breached before the ema cross over.
The key is AFTER the code is activated – the first action is level A must be hit – this activates looking for the ema cross over .
if level b is breached BEFORE the ema cross over the trade is cancelled for the day . this is very important as it can retrace which is what it did in the screen shot – but the trade is no longer valid .
you will see from the screen shot – level B was breached after level A was hit and before the ema cross over therefore it should not trade .
In the screenshot it did subsequently retrace and crossed over on the ema and traded but it should not as level B was breached before the ema cross over so it must cancel the trade / deactivate the code . Once level B is breached it should stop looking for a trade or any ema cross over .
it’s probably easier to look at the possible options
…………………………………………………………..,,
The possible option are ONLY 2 .
price is falling so this is the sequence of events in order :
OPTION 1
1.level A is hit
2.it starts to look for ema cross over
3.ema cross over happens a trade is placed – this cross over can be at ANY level below A OR above A but NOT below B ( note the cross over can happen at ANY level >B and <or > A AFTER level A is activated FIRST triggering it looking for this ema cross over – which is step 1 above )
(B)
1. level A hit
2.it starts to look for ema cross over
3.no ema cross over happens
4.level B hit so trade/code cancelled . It no longer looks for any cross over or any trade the breach of level B basically turns the code off .
obviously the reverse for a sell.
does that help explain it better by looking at the only 2 possible sequences of events ?
.
