From Richard M. Smith, PhD, Founder, TradeStops:
If there’s one thing I’ve learned over the years, it’s that it isn’t always good to be early. It’s better to wait for the fat pitch… and the fat pitch in gold is setting up right now.
I’ve been burned too many times trying to jump the gun on an equity or an asset that I was excited about but that wasn’t quite ripe for the harvesting. That’s why I created the Re-Entry Rule… and the Low Risk Zone. These two indicators are both great… but they’re even better together.
The Re-Entry Rule is conservative by design. It has to be conservative to keep us out of unnecessary head-fake rallies and whipsaws… like it has done for gold these last few years.
By the time a Re-Entry Rule triggers, an asset has already enjoyed a substantial rally. To trigger a Re-Entry Rule…