Not exact matches
Pullbacks to the value
of this trend line near 22,200 are
entry opportunities.
As you may recall from this recent blog post, we're holding a long position in this ETF (currently showing an unrealized gain
of 10.5 % since our May 23
pullback entry).
Although we would prefer to enter $ KOL as a
pullback buy
entry, a breakout
entry on the next move above the horizontal pivot may be in order if the ETF continues to hold near the highs
of its recent range.
We set a buy stop above resistance
of the short - term downtrend line that formed during the
pullback, enabling us to buy $ MZOR at $ 45.11 on the second buy
entry.
Even if the
pullback entry is good, a vast majority
of breakouts and
pullbacks fail when overall market conditions are weak and stocks are under distribution.
We recently profited from the sale
of two ETF swing trades on the long side
of the market, $ FXI (China) and $ EPOL (Poland), and we continue to monitor select international ETFs for potential buy
entry on a
pullback.
Bar 7 - Two legged
pullback in a bull move, opening reversal up from moving average second
entry buy, but big outside up bar at top
of 6 bar tight trading range, limit order market, sellers scaling in above, buyers below, both scalping.
Also, you may want to review how we gained 19 % in just 6 days with $ JO, as the ETF may again be setting up for potential buy
entry on its current
pullback (subscribers
of The Wagner Daily newsletter will be notified
of our exact buy trigger, stop, and target prices if / when we re-enter $ JO).
Nevertheless, select currency ETFs such as $ EUO or commodity ETFs like $ DZZ (both pointed out as potential
pullback entries in the May 21 issue
of our newsletter) could be nice plays because they have a low correlation to the direction
of the overall equities markets.
If you wish to learn more about our proven system for buying
pullbacks of breakout stocks, check out this September 10 video on our blog that detailed our recent
pullback swing trade
entry into $ YELP (which is still open and presently showing a gain
of 30.2 % since our
entry).
For this
pullback entry on our ETF trading watchlist, regular subscribers
of our Wagner Daily swing trading newsletter (details here) should note our exact
entry, trigger, and stop prices based on our technical trading strategy.
The double top is complete, and a short
entry is taken when the price falls below the low
of the
pullback.
Scenario C is a slightly deeper
pullback to the 20 - day EMA, which would be the most patient
entry, but one that also presents the highest risk
of missing out on the trade.
We will be watching this ETF closely for a possible buy
entry on an undercut
of the 10 - day moving average or a
pullback to the 20 - day EMA.
On the other hand, conservative traders should wait for a bearish
pullback towards the price zone
of 1.3370 - 1.3400 where a valid buy
entry can be offered.
On September 10, we walked you through our recent
pullback entry into Yelp ($ YELP), which we are still long in the model portfolio
of our Wagner Daily newsletter.
Furthermore, false breakout
entries enable short - term swing traders to have a clearly defined stop price below the low
of the
pullback, which creates a very positive reward - risk ratio for the setup.
Pullback entries develop when an ETF or stock gently retraces from the most recent «swing high»
of its uptrend and finds technical support at an area
of horizontal price support and / or a key moving average.
As such, we began stalking $ TRUE for a potential
pullback buy
entry point as it pulled into major support
of its prior highs, as shown on the weekly chart below:
Of course, using this
entry technique means that occasionally you will not get a
pullback at all and the market will simply take off without you.
Like the standard head and shoulders chart pattern, your stop loss in the «
pullback entry» would be placed above the right shoulder
of the pattern.
Pullback entry is a very powerful method because it uses the eager capital
of those who missed the first move.
Bar 7 - Two legged
pullback in a bull move, opening reversal up from moving average second
entry buy, but big outside up bar at top
of 6 bar tight trading range, limit order market, sellers scaling in above, buyers below, both scalping.
If you hesitate waiting to see if it is going to work out then your
entry is later and you will have to hold through more
of a
pullback if price retests the neckline.
Entry: Once there has been a breakout, or the establishment
of a new trend, wait until the market slows down a little, and watch for a
pullback to the 12 or 24 EMA.
I'm in this from the break
of trend but it may give us another
entry set up if we get the right corrective
pullback (blue Scribble).