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Some
Pull Backs are shown with solid colour whilst some are hollow
- Why ?
When
a Pull Back is first triggered it is always 'Hollow'. i.e.
a Potential signal.
If prices then move higher on a 'Long' signal then then
Pull Back is drawn with a solid colour to indicate that
the trade may have been taken i.e. 'Qualified'.
If a signal remains 'Hollow' then it is unlikely that the
trade will have taken so no losses involved.
If a signal becomes 'Solid' then it can be established if
a profit or loss was likely.
The
criteria for a 'Qualified' Pull Back to the Long Side is:
Price trades through a Trigger Point above the bar with
the Pull Back Signal.
Price trades through the Trigger Point within 5 bars.
The Trigger Point is 50% of the 10 bar average trading range
above the current bar.
Reference:
Q080421a
Written : 21 April 2008
Revised :
TESS Version 4.0.29
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