Shockr wrote: Sat Oct 25, 2025 3:42 am Back in the early part of my trading education, an instructor mentioned an "old system" call the First Pullback System. Basically, when your chart has a change in direction, you do not know if this is a new trend or just a pause in the previous direction. So you do not get in on the new direction, but wait to see what direction it is going to move. If you are goinng to stay with the previous direction , you will move past the previous change in direction. If you are in a new direction, you will get a pullback. Pullback means that you will move back in the previous direction but not past the turning point. This pullback means a possible new direction.
When I first saw Xard's Simple Trend Following System I could see this "Old System" come to life in a much clearer version. The initial change is direction (Big Dot, Arrow, Square) shows a possible new direction. But you do not get in then as you cannot tell, for sure, if you are starting a new direction or just having a pause in the previous direction. The new direction changes (dot) and we wait to see if this is a new direction. We could go past the previous change in direction (Dot, Arrow, Square) or be in a pullback of the new direction (new or second dot). If we get a new dot (second dot), chances are that we are going in the new direction. With the old "Pullback System" there was some discrepancy as to when to enter the new trade. Xard has chosen to use the crossing of two EMAs!
When I was first trading, I didn't like the First Pullback System. I wanted to get into my trade sooner. Seemed that alot of pips were being missed. As I age I have learned more patience. The dots, arrows and squares are just markers to make it easier to see the directional changes. You don't TRADE them. They let you know when a trade is near.