EXIT PLAN FOUR
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EXIT PLAN FOUR
1. -D1 has cut across +D1 (below 20) and is rising up after cutting across to 20 while the +D1 is still falling
2. Parabolic Sar had reversed
Once the above two conditions occur, I will exit a trade.
WHEN NOT TO TRADE WITH THIS STRATEGY EVEN THOUGH THAT SIGNAL HAD SHOWN FOR YOU TO TRADE
NUMBER ONE: When +D1 is rising above 20 and -D1 is moving below 10 but ADX is falling to below 25. Don’t trade. You can trade if ADX is rising from 15 to above 20 but not when it's trending down to below 25
NUMBER TWO INSTANCE: when both ADX and +D1 are rising to above 20 and –D1 is moving to below 10 but suddenly, one of either ADX or +D1 starts to trend down before the final confirmation is confirmed, don’t open trade.
SOMETIMES, AN EXIT SIGNAL CAN OCCUR BUT DON’T PANIC IN THESE SITUATIONS AS THEY CAN BE CALLED TREND CONTINUATION. IT’S ONLY A LITTLE ISSUE DISTURBING THE MARKET BUT THE MARKET SHOULD CONTINUE IN THE ORIGINAL TREND. SO, DON’T EXIT THE MARKET WHEN ANY OF THE FOLLOWING OCCUR
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