When to Enter the Market when Trading with the Five-Energy Methodology

By Barry Burns

Timing entries is something many traders struggle with. You need to time your entries with extremely high probability and avoid getting stopped out frequently.

The following figure illustrates an example of how the chart looks when the trend is up, momentum is strong, and a mini-divergence pattern shows on the stochastic indicator (price makes a lower low, and %K on the stochastic indicator makes a higher low) on an early retrace in the trend.

[Credit: Figure by Barry Burns]
Credit: Figure by Barry Burns