Trading Plan: Timing

With the knowledge that in a couple of minutes the market will trade higher or lower its much more saver to enter a reversal trade. Sometimes there is a red bar and a red dot in a decision point area, on such events its absolutly safe to enter a trade without any more confirmation.

More often price is in a choppy range, so waiting for a trendline break is important to keep the risk low.

Exiting at targets in DP areas is still the best way to make profits, but to reduce the time in market its wise to not take the reversal signal before a confirming buy or sell dot appears on the screen or will appear within some minutes .

The historical buy or sell dots will also explain why in a down trend there are some rapid up moves. The trend however is not broken till a trendline is broken, so the dots really help you holding on to winning positions.

Sometimes moves can happen very quickly therefore a stop order at the trendline break level can help you getting into the move earlier.

Remember two things are needed for a valid long entry: trendline break or large range bar AND a price above a blue bar.

The setups when to look for those entry conditions is clear: In a Decision Point area or at a point in time when price also moved in the past towards the favourable direction.

So especially in choppy market conditions the breakout direction can be identified prior to the breakout and then the positions can be held until the polygonal moving average changes direction again.

Pretty complex stuff but actually quite easy to understand if you study these charts.