Lets look at a couple of recent trades which contain a single common element.
The following two trades are both an entry into the first pullback following a strong bearish price swing. The common element in both is the way that I waited for a three-swing lower timeframe retrace. Just like the complex pullback on our trading timeframe provides a nice source of trap orderflow for continuation trade, the same concept can be used on the lower timeframe to trigger into a single leg trading timeframe setup.
This is by far my preferred way of entering on the first pullback after a strong move… waiting for a lower-timeframe pattern based entry to stop me into the trade.
Second example:
Happy Trading,
Lance Beggs
I dint understand the 3 swing entry….. in example 1, 1st chart I can see only two swings…
Three swings – swing one up, swing two down, swing three up. Sometimes you’ll see them called a 123 retracement, or ABC retracement. The name I’ve always known them by is a 3 swing retracement.