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For example buying the dip to the 50 sma on the 19th worked. But one had to take profits on the 20th. Shorting the break below on the 20th worked if one took profits. Going long on the break over the 50 sma on the 21st worked well. Take profits on trades in wild volatile markets
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3 Things to think about when you are trading the System in extreme volatility like the market is in now. 1) Trendline. The trend line for the S&P is up in the short term. 2) Candles are very important signal in and around the 50 sma. 3) Taking profits from trades. 4) Day Chart.
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So fair to say to clear up for the noobs. The system “sell” signal is not necessarily a “take profit” signal. Profits must be taken much sooner. On the rip or extension off the 50? I usually take the “sell” as more of a “short” signal (when the 10 drops below 50)
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