Calling Bottoms

It's obvious from the preceding section that adhering to the 13 steps of trend following inevitably leads to a delayed entry on a developing trend, for two reasons. One is that the long-term chart must clearly show that an uptrend is in progress, and the second is the requirement from float analysis that the status must be float breakout. If the new uptrend starts from a V bottom, these two requirements, especially the float one, will usually cause the trader to miss a good portion of the trend. This section shows how a trader, who is more aggressive than one who strictly follows the 13 steps, may use the techniques I've written about here for entering after a V bottom.

Let's go back to the example of the previous section. As ...

Get MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.