[badcharts]

badcharts,
When you make an entry on a favorable pullback, do you buy right when the price drops down to near the breakout, as Weinstein seemingly advises in the book; or do you wait for the price to hit that level but then start recovering for a day or two with consequetive higher closes (as I "think" maybe isatrader approximately recommends, tho not exactly)

Hi Mr.Barron,

The section I found on this important concept for entry is soo small in Stan's book. Page 14-15. "...brings the price of the stock back close to the intial breakout point..." 

On very light volume, a candle that touchs the breakout line or close to it would be enough to enter.

Additionally, if you want to increase you chances of this being a normal pullback (and not a reversal):
1- Wait for a candle such as a hammer or doji around the breakout out line
2- Wait for an additonal green candle following that "reversal" candle. 


Remember, a high or low point (either to draw a trendline or trace out a pattern) is only valid if followed by an opposite color candle. Ex. Pullback in progress... red candle... red candle... red hammer candle... then a green candle <= enter on the close of this candle

Hope this helps!

Regards,

Patrick