Trend Retracement Level

 How to ride a trend?

It is always remaining confusion to a trader when to exit from a trend. There are many entry setup which define our entry system and most traders' entry is perfect. What after entry is how to ride a trend, where to stop and what should be our reentry or add level. in this blog we will discuss this.

For a healthy trend, till 50% retracement level is consider is good. we can say trend is intact and can re-enter or add more at this level. A trend is strong when retracements are not gone below 25% of a trend. So again, we have confusion what should we expect from a trend. Here are some of my observations-

• If a retracement remains till level of 25 - 33%. expect a new high / low from the level where retracement happen. can add a position.
• if a retracement remains till level of 33-50%. expect that price will touch previous swing i.e., level from where retracement happen. can add a position but small in size.
• if a retracement happens beyond 50%. don't remain in that trade and do not add positions.