Normal
The market itself determines the end of a pullback.But I think you're wanting me to be more specific by naming the criteria that tell me a pullback is finished and the trend has resumed, and it's now time to enter the trade.I don't work like that. I place my buy order above the last bar while the pullback is still in progress, my aim being to get in as early as possible as the trend resumes.I first read of this strategy about ten years ago in Elder's Triple Screen Trading System. I tried it and it worked, so I've been using it ever since.The trend resumption bar can be quite a powerful move and I want to get in near the start of that bar, rather than miss out on that move and get in on the next bar.That's an aggressive entry but has the benefit of catching the blast off as the trend resumes via a bullish bar.A more conservative entry would be to buy above the first decisively bullish bar after the pullback. While this is a viable entry strategy, its disadvantage is that you miss the entire move of this bullish trend resumption bar.For a middle of the road appraoch that's half way between aggressive and conservative, you can put your buy order above the second last bar of the pullback, rather than above the last bar.
The market itself determines the end of a pullback.
But I think you're wanting me to be more specific by naming the criteria that tell me a pullback is finished and the trend has resumed, and it's now time to enter the trade.
I don't work like that. I place my buy order above the last bar while the pullback is still in progress, my aim being to get in as early as possible as the trend resumes.
I first read of this strategy about ten years ago in Elder's Triple Screen Trading System. I tried it and it worked, so I've been using it ever since.
The trend resumption bar can be quite a powerful move and I want to get in near the start of that bar, rather than miss out on that move and get in on the next bar.
That's an aggressive entry but has the benefit of catching the blast off as the trend resumes via a bullish bar.
A more conservative entry would be to buy above the first decisively bullish bar after the pullback. While this is a viable entry strategy, its disadvantage is that you miss the entire move of this bullish trend resumption bar.
For a middle of the road appraoch that's half way between aggressive and conservative, you can put your buy order above the second last bar of the pullback, rather than above the last bar.
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