That’s pretty close. The entries are right. My original stop on the first trade would be at the pivot. However I trade in multiple contracts. On the first pullback at 7:00 I would take half profits on the first green bar at 858.80. Too much potential for a double bottom there. Now because of the one point profit, I can keep my stop above yesterday’s high (above 860) and still have a breakeven trade. Also notice that the volume on that pullback to “B” was declining.

I’d try to stay with this trade (let it go to breakeven) only because I like the moves that result from Springs. In fact on that first trade, if there had been a divergence on a shorter term oscillator (there wasn’t), I would have entered a bar earlier and had even a little more cushion.

Lowell

I have a couple of questions.

1. The first is about how far you will let a winning trade reverse against you. In the first spring setup, I think you would have ideally been stopped in at 859.80 during the second red bar. The trade went two points in your favour before retracing 50%.

I realize that you expect first pullbacks to be at least 50% and often greater than 61.8%. In this example 61.8% would have brought the trade to exactly breakeven. Would you have permitted this trade to get back to breakeven or even to a slight loss?

2. If you were entering short near the first blue Dunnigan bar, would your entry have been a stop one tick below the preceding green bar?

Thanks.