Monday, April 13, 2009

My Entry Filter: The Sidewinder

The entry filter is kind of traffic light that is used during entry for long and short.

Green is a "Go"

Yellow  it's risky

Red is "Stay out"

The filter  help me to stay out of choppy  zones and sideway market trend.

Look at the chart.

3:23 buy signal and 3:28 are ignored because the sidewinder is red.

3:33 buy signal has a yellow sidewinder which is risky. We could entered the position but expected a small profit.

3:41 sell signal is ignored due to red sidewinder while 3:48 signal is a bit risky.


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