Everyone is expecting a pull back. This is what is being said everywhere from CNBC, analyst calls, etc.
We have had a minor pull back believe it or not. It occurred two days ago on 5/24. It did a minor pull back to the Fib value of .707. When you have a major trend occuring as we do right now, there are a lot of minor pull backs that occur. The minor pull backs are “healthy” for the trend to maintain its momentum. See chart below.
Sooner or later a major pull back will occur. However, it is not here yet. Therefore, if you have not entered the trend trade, here is a possible setup for a trade IF you are comfortable with it. Since the trend has been occuring for awhile, we are going to use the 8 hour timeframe to enter the trade. Since we are entering the trade late in the trend, the stop at the beginning of the trade is going be huge. If you are not comfortable with this risk, DO NOT enter this trade. This is for the aggressive trader. If you are a conservative trade, do not enter the trade. Be PATIENT.
Once you have entered the trade, use the 480 timeframe until the entry price is above the daily Kijun Sen value. At that point, switch to the daily timeframe and use it to manage the trade.
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .