If your trading strategy entry conditions are based upon the ‘Value when Entry Activated’, ‘Max Value since Entry Activated’, or ‘Min Value Since Entry Activated’ indicators, then you may experience a confusing paradox. This anamoly will manifest itself if you try to plot the trading strategy entry condition on the chart as an indicator. The indicator on the chart may NOT show that an entry was called for, but the trading strategy may nevertheless give a buy signal.

The reason this happens is because the trading strategy and the indicator on the chart are looking at a bar under a different light. The trading strategy is looking at the condition before any action has been taken. The indicator on the chart is looking at the condition after the trading strategy has taken action.

In other words, the trading strategy is looking at the Value when Entry Activated prior to its activating an entry whereas the chart is looking at the Value when Entry Activated after the trading strategy has activated an entry. The result is that the trading strategy uses the value from the previous trade, whereas the chart uses the value from the current activation.

This paradox also hold true for exit conditions which use the ‘Value when Exit Activated’, ‘Max Value since Exit Activated’, and ‘Min Value since Exit Activated’ indicators.

To avoid the paradox, use ‘Value when Filled’ instead of ‘Value when Activated’.

In the special case when you are using ‘Value When Entry Activated(Close,1)’ and ‘Value When Exit Activated(Close,1)’, there is another way you can avoid the paradox. Instead of those, use the ‘Entry Price’ and ‘Exit Price’ indicators.