The primary element dial that should go into every entry decision is simple. Is there evidence of buying, continuing the trend as indicated by the reversal signal? Being able to recognize which trends are going to get stronger ‘buy’ participation will increase your portfolio returns impressively.
The Basic Entry
Assumption
The
primary element dial that should go into every entry decision is simple. Is there evidence of buying, continuing the trend as indicated by the reversal signal?
Being able to recognize which trends are going to get stronger ‘buy’ participation
will increase your portfolio returns impressively.
For
example, a signal has indicated that the trend has reversed. It may be a slow
reversal; it may be a power move. The signal revealed that a new trend was
probable. Reviewing past charts to see what signals occurred at the reversal
points is a well-advised practice. Identifying the historical trading patterns
of a particular stock adds to the arsenal of information. Learning to recognize
how a strong up trend performs in the previous trading environments puts the
probabilities in your favor. The signals are going to reveal plenty of buying
opportunities. Evaluating the follow-through of the signals will allow you to
filter the best of those opportunities. Visual analysis of previous reversals
will take mere seconds of time.