This eliminates risk associated with the inevitable pullback. Choosing the wrong action-reaction trigger produces frustrating results. Every trader knows the pain of executing a low risk entry, riding a profitable trend, then losing everything on a subsequent reaction. Avoid this experience using clearly defined tactics to minimize emotional momentum trading. Markets inhale and exhale as dynamic trends evolve.
Reaction follows impulse as momentum seeks stability in preparation for new price change.
Smart traders read this continuous cycle through the wave motion in bar charts. Article contributed by The HARD Right Edge , which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. Article reprinted here with permission , which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. All Rights Reserved. Republication of this material, including posting to message boards or news groups, without the prior written consent of Tulips and Bears LLC is strictly prohibited.