Three Step Follow technique to identify trade points

I am Suda from the Tool Development Team at Cross Retailing Co., Ltd.

Thank you always for using our development tools m(__)m

Today, I will tell you about the timing for trading with the free trend-following tool“Three Step Follow”.

We will discuss the timing for trading!

First, thisThree Step Follow is not so much about catching the initial move of a trend

as it is a tool to ride the wave once the trend has momentum and aim for profits.

By checking the market situation just before a signal is issued, you can improve entry accuracy.

Therefore, when trading withThree Step Follow,

instead of entering immediately when a signal appears,

- Confirm a breakout of a range

- Check for pullbacks and retracements

- Pay attention to the length of the candlestick bodies near where the signal occurred

such situations that confirm the momentum of the trend occur,

will help you secure more steady profits.

For example, in the image below, after breaking a resistance line drawn in a recent range market,

a pullback formed above the resistance line, and it stretched further.

Later, after another pullback formed and a signal appeared,

this is considered to have a high expected value.

Three Step Follow does not provide a profit-taking signal, but

the recommendation is to draw a trendline connecting the first pullback and the signal,

and to exit when the candlestick touches that trendline.

Three Step Follow is designed for capturing profits along the trend from its early stages to its peak.

It is not a tool to extract profits from the entire trend from start to finish,

and since it is suited for trades that skim through the trend,

we do not recommend being overly greedy.

In this way,Three Step Follow adheres to the basic principle of trend following

and by doing so, you can achieve even higher accuracy

in targeting profits.

It can also be used as a supplementary tool for trend following, so

please consider incorporating it into your trading as well.