Sometimes a trading vehicle’s progress on a chart from point A to B can be so herky-jerky that it’s difficult to qualify the trend-leg as a usable impulse leg. We often do so anyway, treating a gnarly A-B leg as though it were an uninterrupted, straight line. However, it must meet certain qualifications before we can do so. During this session, we considered an exotic example that helped us clarify the rule. There is also some material dealing with trading the nastiest sonofabitch of them all, the E-Mini S&Ps. Turns out that even on the four-second bar chart, we must stalk it like a rabid badger and bend the rules in order to produce a ‘camouflage’ entry signal that is likely to work.
