“That’s the point I still don’t get about Trend Following…”

A trader who wants to trade pullbacks writes:

That’s the point I still don’t get about Trend Following and the breakout rules. It should be natural to always look to get better prices.

Joao B.

Better prices? What does that mean?

I agree that there is no evidence that pullbacks work. Even because the definition of pull back is not clear. Pull back is a retracement to some fibo levels, to a level of support and resistance (and if so, which level to choose?) or even the use of some indicator that will give enter signals when it is at extremes (and the problem here is that in a trend, such indicators may never go back to extremes).

Pull backs, retracements, support and resistance, etc. are bullshit. Where are the pull back, retracement, support and resistance legends? They don’t exist.

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