Bill Graves Veteran   Posts: 125 Joined: 11/25/2006 Location: Phoenix, Arizona  User Profile | Hi Guys, Sorry wasn't able to check last weekeend, as promised, on how far price can penetrate the 20 EMA before a trade is no longer considered a grail trade. But I got it done yesterday. Here is the official word: For testing purposes, use a 2 ATR stop, so price can retrace back a bit further than the EMA. If there are sell divergences on a higher time frame and you are looking for a grail buy on the lower time frame, then price will almost always go further through the EMA. If the market is very strong with new momentum highs on the higher time frame, price can even fall short of the EMA on the lower time frame. The grail is just a good structure or model to trade around - nothing magic about the EMA though. This information may make the system a little harder to program. But there you have it. Cheers, | |
