The Entry “Trick”
In chapter one I told you to either buy or sell the breakout of the number two point.
Above I simply show the valid 1-2-3 top an bottom patterns and where to place your buy/sell points. At the break out of the number two point. But, you see there are many traders, systems, etc.. which blindly sell and buy at the breakout of every pivot point on a chart. What we do know is there are usually many orders placed at the breakouts of these points.
Now, whilst this is good you really need to beat the crowd. You want to be in the market just before the masses. How do you think you can achieve this?Easily. Simply bring your order slightly in. In a buy point buy at a slightly lower price than the breakout of the number two point.
So no big secrets here. Instead of simply buying at the breakout and joining the mass of other buy orders as they scramble to get onboard the break out just move your buy order in so to enter the market before most others. This will cut down on your slippage and ensures you will get a big initial move on your order.