#1 System - HomeHOW TO HOLD THE TRADE - BUY EXAMPLE
Once we get a buy signal, how do we know how long to hold?
The answer we hold until the market closes 2 bars below the 10-8 bands2 BAR HOLD
This chart of Corn shows why the 2 bar concept is important
If you will look at the beginning of the chart
Corn made a 2 bar buy signalFrom the low to the high of this bull swing
Corn never closed 2 full bars below the 10-8 bandsSo with the 2 bar 10-8 bands system
It would have gave us confidence to hold long the entire bull swing
SELL SIGNAL 2 BAR HOLD
Here is a chart of Oats showing the 2 bar concept
After putting in a 2 bar sell signal close to the top
Just after May 31 Oats made a strong rally
But never closed 2 full bars above the 10-8 bands
That was telling us the trend was still down and to hold short
NOT AS EASY AS IT LOOKS
Of course it is easier said than done
To have a market move our way, and then to hold as it moves against usWe might be trying to follow this system - have a great profit
And be holding as the market moves against us waiting for the trend to continue
Then the market makes 2 bars the opposite way and there goes the profitUSUALLY BETTER TO HOLD
Over all it is probably going to be the most profitable to hold
Even if you have some nice profits that slip awayWhen we are in a good trade and holding - we are not making any decisions
The fewer decisions we have to make - the fewer mistakes we will makeThe big trades that do end up moving our way for a long time
Will more than make up for the nice profits that we lose sometimesTHAT BEING SAID
That being said let's say we get into a trade and it makes a nice swing move
And we just don't want to let the profit turn into a loss or lesser profitWe could make sure we lock in that profit by using a trailing stop technique
Here are some of the best ways to lock in profits besides the 10-8 bands 2 bars#1 - The parabolic indicator
#2 - The 3 to 5 bar low (for a buy signal) - sell signals the 3 to 5 bar high
#3 - A good old trendline breakGETTING BACK IN THE TRADE
So if we lock in profits and then the market keeps trending
And we should have just held onto the trade we had goingThen we have to find a place to reenter the market
Here are a few was to look to reenter the trade#1 - Using the 10-8 bands
#2 - A parabolic indicator entry signal with the trend