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Joined Mar 2020
|1,607 Posts
Another old maxim:
"Buy on the dips [if the trend is up] or sell on the rallies [if the trend is down]"
was a common way of saying wait for the pullback and take your position.
Also if there is a breakout (and not a fakeout) from a consolidation pattern then also wait for the pullback.
Look for confluence areas for pullbacks here or on his thread - MAs, fib rets to which, also add valid trendlines that have been tested at least a couple of times.
Two options here then:
1. Watch the price action around the pullback using price patterns and/or bar patterns or
2. Place staggered limit orders ahead of time to where it is likely to occur if you don't want to screenwatch 24/7.
This might mean you could guess wrong and be stopped too early or be too conservative and miss the move altogether.
Both with the added validity of confluence or other information.
Both could be done with tighter stops for a better risk/reward ratio rather than trying to chase the initial break.
