A small change to my trading rules.
It is not uncommon for a price to move beyond the price channel (a breakout) but then to return to within the price channel during trading on the breakout day.
This change requires entry at a price beyond the breakout level. If the price has retreated to within the price channel, then I enter my order as a conditional trade, at one cent (or one pip in the case of forex) beyond the channel boundary.
The new language is in the list of conditions for bull and bear entry. The final conditions read like this, with the new language underlined:
Bull: "If yes, then open a bull position at a price above the breakout level.
Bear: "If yes, then open a bear position at a price below the breakout level.
An example from today's Top Prospects is JNPR.
My trading rules are set out in "How I Trade", which is available on the menu bar.
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