Hi knightflyer,
You do not missed anything.
Strategy does not prevent to opening multiple positions, in the same direction.
Creation of any position is triggered by divergence calculation. Sequence of positions and theirs directions depends only on results of divergence detection.
So, if strategy detects next divergence sequences: “Buy, Buy, Sell, Buy”, for example, the corresponded positions will be opened in the same sequence.
NB
For real trading, in case ‘Hedging account’ you will have exactly the same sequence of positions,
i.e. “Buy, Buy, Sell, Buy”.
In case ‘Non-hedging account’ (FIFO, US-account) the third position (Sell) will close first (Buy), so result will be “Buy, Buy”.
Thank you too.