DislikedSay you plan to enter the market at the 50% retracement level, which for this example we will say is at 1.3700. The market is bullish. What Josh is saying is dont enter the market exactly when price hits 1.3700, wait for it to hit/come close to that level then bounce up 30-50pips before entering so even though the 50% retracement level is at 1.3700 you will enter at 1.3730-50 after it bounces off/comes close to 1.3700
Its sort of like making sure the 50% line was effective, its worth missing out on those 30-50pips instead of entering exactly at 1.3700 just to watch price not respond to the 50% retrace line
.. because this is a trend following strategy volatility is important, its what separates swing trading to trend trading and in my opinion which most would agree with on this thread.. swing trading is for gamblers not investors.. trying to predict a top/bottom is like trying to bang a supermodel, its great if it works out but chances are, its not gonna happenIgnored
Your interpretation of what I said in my post is not complete.
I beleive that Jacko always waits for allows for the Fib/round number to be penetrated (to the down side if taking a long) by 30-50 pips then take the trade at the Fib/round number if/when the price comes back.
I.E. there are two possible places to get in off the same calculation. For ease of understanding I will assume a long trade in a short term downtrend , long term uptrend:
1. 30-50 pips higher than a FIB/Round Number after a bounce off that Fib/Round number.
2. At or close to the Fib/Round number after the price dropped 30-50 pips below the Fib/Round number and resumed the long term up-trend.
As you pointed out, Jacko always wants to be trading with the long term trend at his back.
In a rising market with both short and long term trends up, I believe he waits for the price to rise past a Rond number by 30-50pips then buys on the pullback to close to the round number. If it doesn't pull back - just go for the next round number.
Perhaps Jacko would like to clarify this?
Ian