Hi Alejandro,
Yes in KM we can go against the main trend. The reason is that it is all matter of frame of reference. Let us take example of daily chart of eur/usd. ATR 21 shows us that its avergae dialy range is 100 pips.It means that usually we see candles roughly covering 100 pips. A daily chart is composed of 24 hourly candles and 48 candles of 30 M. As soon as new daily candle appears, it will keep on oscillating over this ATR for next 24 hours.
So if we are using KM on 30M or 1H we will atleast get more than two or three opportunites when we can go long and short without worrying about trend.
Please keep in mind that i have given a very very simple and general example just to make you understand why KM opts for counter trend trades too. Abvoe all when you enter on slope change of wma5, you always get an opportunity to BE or exit with minium loss.
kolachi
Quote:
Originally Posted by atisnado
Hello kolachi, thnaks for answering me. I got this doubt, if the trend on the daily and the 4 hour charts, lets say shows a trending up, and as I know if I trade on smaller timeframe, for instance on a 30 or 15 min TF, I should align myself with the main trend, so I would go lon. In your system, can you go against the main trend on samller TF? would that work for you, insīt it too risky? Thanks again and keep your good work.
Alejandro
|