Disliked{quote} your two screencast drawings for buy and sell illustration is dangerous and not correct for trend trading. the concept is to buy/sell in the direction of the dominant trend, build positions during the retracement, let profit run when the market is back into the dominant trend. most traders try to do the opposite trying to pick tops when they want to sell and pick bottom when they want to buy. we must never try to pick tops and bottoms in all market types. {image}Ignored
I was trying to say in my summary was that even when the price is going the wrong direction and we found the trend isn't what we expected, we could breakeven or cut loss short when price bounce back. This is how I felt about one of the benefit of ME/ME trading
So the two images that I showed were buying or selling in a counter trend, so by building position along the way, we could find a an opportunity to close them all when the price is bouncing back near the average entry level.
I apologized for not expressing the idea well. Not sure if can understand it.
Regards,
mousteven