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.