Jeff, sorry to ask you so many questions but are you finding that the TEMA dot doesn't print until the bar closes or does it print on the beginning of that bar formation, in other words could that TEMA dot repaint or actually disappear before the bar closes?, thereby giving a false entry?
Yes, it is possible for the tema dot to disappear. You could set the calculate on bar close to true and it will not disappear....however you will probably miss the trade. This is especially true on a slower chart. It's nice to have some additional confirmation like the break of a recent swing high/low as shown on todays oil chart
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
You know.....I don't worry about repainting that much. I don't like it......but I accept this as a reality. The market is dynamic not static. As such you never know what to expect. You could get the perfect, not re-painted signal and it still might turn on a dime and take you out. Try to get a confluence of events in your favor. Don't just wait for a dot to appear. ( it could just as easily disappear) Monitor intra-day support and resistance along with the daily pivots. And try to trade during the best part of the trading day. The likelyhood of re-painting is lessened when there is strong participation in the market.
The following 3 users say Thank You to Jeff Castille for this post:
Most often I will have a buy or sell stop resting in the market. I have observed the action of the indicators so much that I know what conditions that must be met for the signals to be generated. I place my order at this point and wait to get taken into the market.
Other times I will enter at the market. In this situation the direction has usually been established and I am anticipating a continuation trade. If I get a good pullback I'm ready to jump on the next signal......which is the sharkfin resuming the trend.
I am constantly drawing lines on my chart to identify swing highs/lows and trendlines. No indicator that I have found can do this as well as a trader can do it manually. I find that range bars are particularly well suited for this purpose as they only deal with price....which is all I care about......other than time of day.
I try to think in terms of making new highs or lows....breaking important support or resistance....closing opening gaps....testing yesterdays high/low....testing globex high/low.
Just remember that entry is the easy part.....then comes the important stuff....how to manage your money. When to take profits, when to move your stop up, when to close the trade.
The following 4 users say Thank You to Jeff Castille for this post: