Michael 1. Parsons: Enter On The
Michael 1. Parsons: Enter On The
Michael 1. Parsons: Enter On The
Parsons
continuing with a new trend. In the early stages of trend formation there
is a strong possibility that a market will give you a false signal. If this
were the case, a premature entry would put you on the wrong side of the
market. So this is a good low-risk rule of entry.
To illustrate, if you had been in a downtrend and the inside channel line
(the one acting as resistance) was broken by price fol lowed by price bars
closing beyond that line you would then buy or enter long. In the opposite
scenario of an up trend you would then go short after the inside channel
line were broken and price bars closed beyond the line.
If the market had been in a trading range or sideways pattern and both your
channel lines are horizontal then you would enter when either of these
lines is broken and price closes beyond that line. Figure 1-7 provides an
example of a conservative entry.
Enter on the
Crude all
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