The Rules for a Continuation Trade are as follows:
Things to remember first:
If your exit indicator or your confirmation indicator flips and provides the opposite signal you exit the trade.
In all cases when trading the No Nonsense Method you can only enter a trade when price is within 1 ATR from your baseline.
When you enter into a Continuation Trade you can ignore two rules:
- The 1 ATR entry rule
- The Volume Indicator
Price can not cross and close the opposite direction past the baseline.
In the case of my specific algorithm I use a special specific moving average on my chart. If price crosses below it, I exit. When I want to reenter a continuation trade I want price to cross above my special specific moving average before I reenter and perform a continuation trade.