Free lessons › Trend Continuation › Continuation Entries
The HL/LH entry framework
Where pros add on pullbacks without overstaying.
10 min · Intermediate
What you'll learn
- Follow a five-step framework to enter on a higher low or lower high.
- Set stops under the new swing and targets at the prior high and a measured move.
- Recognize when a trend is too mature to keep adding.
Key takeaways
- The best trend entry is at the higher low or lower high, not the new extreme.
- Confirm the swing with a close back in the trend direction before entering.
- Stops go just beyond the new swing; targets are the prior extreme and a measured move.
- When adding, protect the original position first and cap total open risk at 1%.
- Favor the first two pullbacks; mature trends deserve less aggression.
Glossary
- Measured move — A target found by adding the size of the prior impulse to the new swing point.
- Total open risk — The combined dollar loss across all shares if every current stop is hit.
- Pullback count — The number of pullbacks since the trend began, used to judge trend maturity.
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