Bellow is a bullet point summary of a high probability trend re-entery technique.
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RBS/SBR zone trend re-entry method: bullet point summary
1. Determine your time frames using a factor as close to x5 as you can get, ie:
a. Trigger
b. Intermediate
c. Longer
For eg, I use 1min, 5min, 30min respectively, but 15m/1hr/4hr, 4hr/Dly/Wkly are other combinations.
Determine then what is happening on your intermediate and longer timeframes (+.) If these time frames are trending, then they will have either
i) Broken out of an obvious range on the longer time frame
-or-
ii) Be making obvious higher swing lows and higher swing highs in an uptrend, or lower swing highs and lower swing lows in a downtrend.
Then:
Assuming a downtrend as an example:
1. Look at your intermediate chart and determine where the last broken lower swing low and above that the last lower swing high is. This is your potential SBR zone. (support becomes resistance)
2. Note too the last SBR zone on the next time frame up/your longer time frame.
3. Note any significant points within that SBR zone.
4. Await a pullback to the SBR zone and if re-entering the trend, ensure your stop is outside of the extrme of that SBR zone, ie it's lower swing hi.
** Should this SBR zone fail and price exceeds its lower swing Hi extreme, making a deeper pullback look for Resistance now in the next time frame/longer time frame's last SBR zone.
NB:
1. Reentries to trends that exist on charts beyond your longer time frame are potentially stronger, but be aware also that the stronger the trend, measured in this way, the greater the chance of a 'deeper pullback.' Reentries to only your inetrmediate chart trend carries potentially greater risk than if to your intermediate and longer time frame trend+.
2. It is more probable than not, that if your last intermediate RBS/SBR zone matches that of your next time frame/longer time frame, (+) then that zone will be stronger. It is however unlikely that the intermediate SBR/RBS zones ever match those extending more than 1-2 time frames above it. Remember that SBR/RBS zones generally really need to have some opposite candles in them. Ie in a downtrend example the retrace/pullback should show some bullish candles.
In terms of technical set-ups, effectively you are looking for hidden/reverse divergence/extremes coupled with band/channel deviation in an SBR/RBS zone. On a deeper pullback you will note that the trigger oscillators are likely to be extreme/showing regular divergence and the intermediate oscillators showing hidden/reverse divergence.
3. Remember its the trend on your longer time frame you have eneterd so there will be noise on the intermediate/trigger, but so long as your candles on the longer time frame are generally bullish for an uptrend, bearish for a downtrend, the price action is indicating that the trend is extant on that time frame, ...whose trend you have entered.
Thats the RBS/SBR zone methodology in a nut-shell.
The only other high probability re-entry to a trend that I use are the thrust candles on the 15min+ in the right circumstances. B/O's, Indicator reading based (rsi going above 50, cci above zero lone for eg...) Beacause it looks as though it might, Break of Supp/Res areas are other technical methods to re-enter a trend, but ones that I personally do not favour. Others may be more sucessful using them.
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For example on todays gbpusd action:
Price breaks out of the asian 0318-0354 range to record a higher high at 0369, retracing back into the range for higher low at 0334 before a new higher high at 0391 retacing there too to a higher low at 0361 before the trip up to the current daily highs at 0435.
Using my intraday 1/5/30min configuration time frames: The intermediate RBS zones were therefore 0334-0369, then 0361-0391.
On both occasions price retraced off the new higher high to record a new higher low in those intermediate RBS zones, the 2nd being at that 50% fib of the intraday move up around 0377 area.
Hope it's useful to some.
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RBS/SBR zone trend re-entry method: bullet point summary
1. Determine your time frames using a factor as close to x5 as you can get, ie:
a. Trigger
b. Intermediate
c. Longer
For eg, I use 1min, 5min, 30min respectively, but 15m/1hr/4hr, 4hr/Dly/Wkly are other combinations.
Determine then what is happening on your intermediate and longer timeframes (+.) If these time frames are trending, then they will have either
i) Broken out of an obvious range on the longer time frame
-or-
ii) Be making obvious higher swing lows and higher swing highs in an uptrend, or lower swing highs and lower swing lows in a downtrend.
Then:
Assuming a downtrend as an example:
1. Look at your intermediate chart and determine where the last broken lower swing low and above that the last lower swing high is. This is your potential SBR zone. (support becomes resistance)
2. Note too the last SBR zone on the next time frame up/your longer time frame.
3. Note any significant points within that SBR zone.
4. Await a pullback to the SBR zone and if re-entering the trend, ensure your stop is outside of the extrme of that SBR zone, ie it's lower swing hi.
** Should this SBR zone fail and price exceeds its lower swing Hi extreme, making a deeper pullback look for Resistance now in the next time frame/longer time frame's last SBR zone.
NB:
1. Reentries to trends that exist on charts beyond your longer time frame are potentially stronger, but be aware also that the stronger the trend, measured in this way, the greater the chance of a 'deeper pullback.' Reentries to only your inetrmediate chart trend carries potentially greater risk than if to your intermediate and longer time frame trend+.
2. It is more probable than not, that if your last intermediate RBS/SBR zone matches that of your next time frame/longer time frame, (+) then that zone will be stronger. It is however unlikely that the intermediate SBR/RBS zones ever match those extending more than 1-2 time frames above it. Remember that SBR/RBS zones generally really need to have some opposite candles in them. Ie in a downtrend example the retrace/pullback should show some bullish candles.
In terms of technical set-ups, effectively you are looking for hidden/reverse divergence/extremes coupled with band/channel deviation in an SBR/RBS zone. On a deeper pullback you will note that the trigger oscillators are likely to be extreme/showing regular divergence and the intermediate oscillators showing hidden/reverse divergence.
3. Remember its the trend on your longer time frame you have eneterd so there will be noise on the intermediate/trigger, but so long as your candles on the longer time frame are generally bullish for an uptrend, bearish for a downtrend, the price action is indicating that the trend is extant on that time frame, ...whose trend you have entered.
Thats the RBS/SBR zone methodology in a nut-shell.
The only other high probability re-entry to a trend that I use are the thrust candles on the 15min+ in the right circumstances. B/O's, Indicator reading based (rsi going above 50, cci above zero lone for eg...) Beacause it looks as though it might, Break of Supp/Res areas are other technical methods to re-enter a trend, but ones that I personally do not favour. Others may be more sucessful using them.
-------------------------------------------------------------------------------------------------
For example on todays gbpusd action:
Price breaks out of the asian 0318-0354 range to record a higher high at 0369, retracing back into the range for higher low at 0334 before a new higher high at 0391 retacing there too to a higher low at 0361 before the trip up to the current daily highs at 0435.
Using my intraday 1/5/30min configuration time frames: The intermediate RBS zones were therefore 0334-0369, then 0361-0391.
On both occasions price retraced off the new higher high to record a new higher low in those intermediate RBS zones, the 2nd being at that 50% fib of the intraday move up around 0377 area.
Hope it's useful to some.
ex member
