Why this IMTF™ Bullish Pullback is not Good?

Why this IMTF™ Bullish Pullback is not Good? With the introduction of the IMTF™ indicator, trading has been simplified.   Our motto is “Trade 1-2-3”.

Here is a trade setup in a bullish setup zone with a swing/long iMTF™ black cross in the setup zone.   Based on the basic rules, you would take this pull back trade.

In this situation, if you want to optimize the basic rules, you would not take this pull back trade.  Why?   The black cross is below price but the purple dots are above price.   This means the day/swing traders have a resistance.    Therefore, for the couple of bars, there has been a battle between the day/swing and the swing/long term traders.

If the purple dot disappears and the black cross remains as it is at the current bar now this is the situation you look for to enter the trade.

Therefore, you can now enter this trade.

 

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About the Author Manesh Patel