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> How does one prevent [re-entering while still oversold] so that
> another long trade won't occur until a new short trade has occurred
> or when the oscillator moves out of oversold and re-enters oversold
> again?
The simplest way is to use code that detects the ENTRY into the
oversold area, instead of a simple "Oscillator < Oversold" test.
In other words, instead of code like this:
if Oscillator < Oversold then buy;
if Oscillator > Overbought then sell;
...use code like this:
if Oscillator crosses under Oversold then buy;
if Oscillator crosses over Overbought then sell;
That way the system will buy/sell only when the oscillator ENTERS
the critical area. If it gets stopped out, it won't buy/sell
again until the oscillator moves out of the critical area and
then enters it again.
Gary
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