October 22 Update #
In this update we made it simple for traders to decide if cascading signals should be used or not.
By selecting “Allow Opposite Signal Only” you remove the possibility of a signal being posted in the same direction. For example, you will not be able to receive a Buy signal after a Buy signal has already been triggered. This cleans up the chart, lowers the noise and reduces the possible stress of having to follow multiple consecutive trades.
What are Cascading Signals #
Consecutive signals in the same direction are a feature, not a bug. They serve the purpose to strengthen the assumption that the initial chosen direction is right.
How to trade cascading signals #
There are multiple ways of trading cascading signals, these are the most common ones:
- Take the trades one by one, each one with it’s own risk , take profits and stop loss.
- Adding to the position and moving the stop loss from the previous trade signal entry to the next signal entry price.
- Following the consecutive trades without adding to the position.
In any of these cases, the stop loss should be moved to a safe zone where the trade is at least risk free.
Another good option is to use the Swing lookback feature in order to plot the trade area that has started with the first trading signal in the cascade. In order to do this, measure the candles from the current price action all the way back to the first or previous signal in the cascade and set the lookback window in the swing detection to that amount of candles. Using this technique can give you an idea of the ranges you should respect for your take profits and more important , for your stop loss.