I apologize for the hazy picture guandi, I don’t know what is going on with tinypic.
The big question is if price is closing higher or lower than something.
If price can close higher than “something” and stay higher than that “something” then price must go higher.
It doesn’t matter if price gyrates or stalls above something; if price cannot close lower then it will move higher over time.
How many times have you said “oh no, price can’t go higher” or “look left, we are obviously at resistance” only to see price continue to trend higher? Again, If price cannot close lower than “something” then it will eventually go higher.
When should I buy?
This is really the wrong question to ask.
What you should ask is:
What is the idea behind going long/short?
Can I position myself on the chart at such a place where I can afford to wait?
How will I deal with the result be it good or bad?
What you want to do is manipulate your position size and space so that 2%(?) is lost only after your lots are reduced to 1 and your space falls to zero.
The survivability of EACH piece that you decide to risk is more important than ANYTHING else.
The second most important thing is maximizing your gains through additions which bring your position (some say stop) behind the price extremes.
…but when should I BUY?!
It really doesn’t matter, you are either going to lose what you were willing to lose or make what you set out to make; position, not entries, is everything.
As for TS, I do not consider the up/down patterns on the underlying chart.
Black is trending action of a small period and red is trending action of a larger period.
A chart is a chart, it has no meaning save the ideas that we force onto it.