Whipsaw Re-entry

Using the breakout above previous rally highs can allow an earlier re-buy and reduce the chance of missing a large part of a renewed advance. Waiting for the standard bullish sequence after a reversed sell signal could produce a new entry at a much higher price. Sell signals can create whipsaws when the market quickly reverses upward. The fourth buy signal is intended to get traders back into the market early after being stopped out or moved out by a prior sell signal.