Can we hold on and break the rule which states to sell if FRV is not hit, as long as price action is favourable?
As long as you have a valid reason for breaking the ‘rules’ with respect to trading, you should end up O.K. with the trade. For example, according to the ‘Hold’ rules for Stochastics (14,1,3), we want to see an ‘intertwining’ above the 80 level. Clearly, GROW continues to exhibit this ‘hold’ behavior. Additionally, comparing the last two day’s volume on GROW, we see nearly 4 times the volume increase. While not ‘technically’ exceeding our calculated FRV levels, volume did show a significant increase between the two days, and as such fits the ‘spirit’ of the FRV rules. As a result, your decision to hold GROW, based on a sound understanding of the system rules, appears valid. Nice call, and keep up the great work.
