Wanted to respond to an email from Paul about how to jump on board a strong trend day – in effect, how to re-enter in a trend. Here is Paul’s email about Friday’s market:
“Hi Barry, Today I found it really difficult to get a clear long signal on the Better indicators. I was getting div dots on both the 4500 and 1500 to go short which I was not about to do given the positive economic releases (regardless of any market manipulation theories) market wanted to go higher so I was looking for something on the Better indicators to give me a confirmation to enter long.
It would help me immensely if you could go over todays activity and share how you would have traded it or did trade it. I know its always clearer after the chart is completed so if you could go into some analysis on how to use the hard right edge to make a decision on a day like today I would greatly appreciate it.
Thank you for all the updates and your contributions I really enjoy the site.” Paul
In short, my answer goes like this: If you’ve got the trend direction right, take the next signal on Better Sine Wave that comes along on the 500 tick chart.
How to Re-Enter in a Trend: Using Better Sine Wave
So if we’re in a uptrend then enter when a Support level (red dotted line) prints. For a downtrend enter when a Resistance level (white dotted line) prints. You can anticipate when the Support/Resistance levels will print and enter before the bar closes (Note: If you’ve bought Better Sine Wave check the last video on the tutorial page).
Additional confirming signals to re-enter in a trend
How to Re-Enter in a Trend: Using Better Momentum
You can get additional confirmation with:
- Shallow divergence patterns on Better Momentum
- Professional bars active on the retracement
- Amateur bars and RAMBO (“R”) patterns on the retracement, and
Of course the best re-entry signals occur when these signals line up, as you can see in the charts above. The video shows these setups at work, plus a nice “OSOK” at the beginning of the day on Friday. It was nice to be out right before the ISM data release at 9am.
I hope you found this video on How to Re-Enter in a Trend useful.