This is a momentum based strategy which generates signals when the price moves with momentum in either direction. This strategy works well on liquid stocks. Its not necessary to close the trade as soon as the close signal is generated and one
can wait for the price to move in the direction as indicated by the prior signal unless price starts to go in the opposite direction. The best set up for a trader is his/her own set up and hence it is recommended to use this strategy with your set up/research.