The Traders' Trick Entry allows the trader to enter at an earlier point, "beat the crowd" with minimal risk.
Key elements are to buy on penetration of the high of a potential #3 bar during a 1-2-3 low, and to sell on penetration of the low of a potential #3 bar during a 1-2-3 high. A third point is referred to as "potential" because subsequent bars can confirm or negate it. A protective stop loss could be placed just below (for longs) or above (for shorts) the potential #3 bar. The initial target might be the #2 point or a fixed number of ticks. If there is a breakout at the #2 point then a portion of the position could be left to run with a trailing stop based on subsequent bar formations ... download the eBook to read more
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