Often “re-entry” into a trade where you’ve already taken profits, can be a little tricky. Questions arise such as “gees – is this move over already “? or “man…..not sure this is the right level, perhaps it’s gonna pullback a little further “.
Aside from years of experience , practice and application, as well a fine tuned short-term trade technology / indicator – there really is no easy answer.
If you’ve been viewing charts for as long as I have, and enjoy the “geometry and math” that goes along with it- often these little “areas for re-entry” just come jumping off the screen.
It takes time, and it takes a considerable amount of trial and error in order to hone “some kind of strategy” that gives you a tiny glimmer of hope – in navigating the short-term time frames / noise that goes along with them.
A couple of other hints:
- I don’t really believe there is much need to get any smaller than the 1H chart (coupled with the 15 minute chart).
- If you consider that a 5 minute chart can move from overbought to oversold every couple of hours or less – there is really no solid indication as to “what level to enter” as…it’s really just noise.
- With whatever technical indicators you use ( RSI, MACD, Bollinger Bands, Stocs , MA Crosses ) consider placing orders “above / below” current price action when your signal is met – and allow the price to “move towards you” as further confirmation.
- Take the time to place several smaller orders ( in the direction of the original trade ) and let momentum ( if in fact you are correct ) pick up your orders “as price moves towards you”.
- Smile and laugh when you get it completely wrong (and price “shoots off” in the opposite direction) as – you don’t have a position! You’ve done something right!
With these simple things in mind, get back to the charts, consider my tweet and subsequent “re-entry across the board”.
See if you find anything useful as…..every single trade entered this morning has moved directly into profit.