Just became member and reviewed learning materials. One question regarding signals. On Friday there as a potential trade on S&P 500 as probably category F on Monday. Today that stop entry was hit, but tonight’s signal places the intereactions now as probably D. What happened and how often does this reassignment of cycles occur?
Hi @gasman! While I’m not really the person to answer your question. I can say from my experience and knowledge with action signals. They require a solid Black&White analysis and confirmations or dismissals before you even take the signal (provided or your own) into account. So if it was a category F interaction in your case - this required a certain confirmation or multiple confirmations. Maybe it was dismissed shortly, maybe it was confirmed then dismissed - either way Black didn’t happen so now you have White. I hope someone more certified can clear this question? These things happen and we have to stay analytical. @david.hickson
Hi @gasman, yes indeed as @Srid says analysis is never black and white or 100% certain. An analysis is updated for every bar with new the new data that has come in. Most of the time the market behaves as expected and an update to the analysis doesn’t mean moving troughs around, but sometimes there is an unexpected move in the market and the analysis has to be reconsidered. This doesn’t happen often.
The advantage of the FLD strategy is that a change in the analysis only changes the character of the trade, it doesn’t change the entire trade. So in your example an F-category changed to a D-category trade. They are both short trades, so the change doesn’t invalidate the trade. The difference is that a D-category trade is not expected to last long, whereas an F-category trade is expected to give you a better and longer duration short move.
I hope this helps.