BI-DIRECTIONAL IN-WAVE ENTRY
This technique is something that I should have included in my eBook "Forex
Surfing", but I simply forgot to write about it then. Oh well, here it is
now. This concept is equally useful to you if you are "Surfing" or if you are
"Scalping".
Sometimes (actually often) you'll encounter times when you are uncertain
about the market direction, but you do expect it to move (not for times when
the market is likely consolidating). It'll often appear that the market has
moved from a trending movement, retraced, done a slight extension that didn't
cross the top/bottom of the wave, and retraced somewhat. When you see
something like this you might be wondering in what direction the market will
eventually break out in. FYI, the early stages of a triangle in formation look
like this too, but it might simply be a brief period of market indecision.
So now you are faced with a dilemma – in which direction do you attempt to
trade?
What I do is I, in such scenarios, might place two entry orders on both sides of
the double wave. The theory is that if it breaks out in one direction that it
should often continue (for however far) in that direction. Doing this you need
to be careful; you don't want to get caught in a bull/bear trap if the market is
actually consolidating (so keep a close eye to scalp an exit at the first sign of
reversal in your new petit trend).
You'll frequently see such a setup shortly after a Fundamental has been
released, after the market has settled from a strong panic reaction and
everyone starts to more logically evaluate in which direction the price should
move.
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