bbmac
a happy new year to you and the family.another very prosperous one in store for you
a question: trend continuation entries
on youre methodology you wait for a pullback to show reverse divergence.
1.when do these occur in the trend.?
do they occur on the first wave up/down.? second or even third
by the time the trend is showing reverse divergence,how much have you missed out.?
waht sort of follow thru do you get when entering.ie do you get a big chunk of thet trend or do you get the rump end.?
thanks
Hi Dentist, thankyou and compliments of the season to you and yours also.
I await a pullback in a pre-identified trend re peak/valley price action analysis...such a trend to exist on at least the 5min t/f...better if on above as well. I will have pre-identified potential sbr/rbs first on the intermediate 5min t/f then if applicable on the trend t/f and await a set-up...a 1min re-entry set-up at the 5min pot sbr/rbs zone or a 5min re-entry set-up at the 1hr pot sbr/rbs zone (timed as a 1min reversal set-up)
I ensure that if re-entering a trend the pullback and set-up occurs at a HlLor H in a downtrend LL or L in an uptrend on the chart it sets-up on and the chart into whose trend the re-entry is sought.
I also ensure that the macd histograms are with the trend direction on at least the 2 time frames above the set-up.
The set-up consists of hidden/reverse divergence and band deviation.
Trends as you know move in impulsive (with trend) and corrective (anti-trend ) waves, the re-entry set-ups can occur after any corrective wave. Elliot Wave theory suggests that impulse waves 3 and 5 are the strongest so I guess following that theory the best re-entry set-ups are after corrective waves 2 and 4?
I don't tend to folow that and act only when the tech conditions are at their optimum;
a. Trend exists on at least next t/f
2. macd histograms 'with' proposed trade direction on next 2 t/f's
c. pullback and set-up at a pre-identified potential sbr/rbs zone
d. set-up occurs at a LH/H or HL/L on both time frame it appears on and thhe one whose trend is being entered.
These optimum conditions have the highest probability of a
with trend follow thru to a Ll in a downtrend or Hh in an uptrend. by entering at the top/bottom of the pullback you are optimising your take from the trend.