If memory serves, he takes the breakout/breakdown (retracement, then a higher high for LONGs or a lower low for SHORTS) of the previous oscillation as an entry signal for going Long/Short.
He also uses unique tools for trend identification, exhaustion (pullbacks) and resumptions.
I also found exactly the same issues with the system, which is why I moved on from it.
However, having said that, I've found that no ONE system/indice delivers for my consistently across the board all of the time.
So if something like this were used in conjucntion with a breakout system (Bitstream used to use one pretty successfully for a while there) to catch the early moves, you could probably achieve a pretty consistently robust system.
Note: It always helps to keep track the previous days' price action (choppy/trending/consolidating).
JJ
He also uses unique tools for trend identification, exhaustion (pullbacks) and resumptions.
I also found exactly the same issues with the system, which is why I moved on from it.
However, having said that, I've found that no ONE system/indice delivers for my consistently across the board all of the time.
So if something like this were used in conjucntion with a breakout system (Bitstream used to use one pretty successfully for a while there) to catch the early moves, you could probably achieve a pretty consistently robust system.
Note: It always helps to keep track the previous days' price action (choppy/trending/consolidating).
JJ
