S&P500 is in the buy volume area, in the 5′ chart has colored in blue a few candles already, is about to reach the Pivot S1 so I enter a long order.
It swiftly hits my Stop Loss.
So I very cleverly enter the order again and again, losing 27 ticks in total!
What is going on here? Simple: I am trying to guess where the price is going: WRONG! Instead of following what the Slope Rider is signalling, which is, well, nothing! No signal in the 15′ chart.
While it signalled an appropriate change of trend earlier on into bearish, that was a good signal.
Price keeps moving down, braking below S1, Slope Rider isn’t signalling a change of trend, so perhaps this bearish move has strength.
I enter a short order with the protection for my Stop Loss of the Pivot S1.
Price bounced and hit my Stop Loss.
So price has bounced off the Pivot S1 and a strong support at 2636.
On 15′ the Slope Rider has detected a divergence and fired the signals to buy long, so I enter an order keeping Pivot for protection of my Stop Loss.
At last price turned back down and hit my Stop Loss.