Enter in mild times
Exit in wild times
An old Wall Street saying, but I always try to follow it.
I like to enter during periods of consolidation (volatility squeeze), or right at a breakout from consolidation. Stops can be tighter and the slow movement gives me time to study the action. If the market is already running, then I have missed the trade. I’m not a good chaser.
Wild times will often mark the end of a move. Wide range bars, high volume, whippiness. These are good times for me to exit a trade and wait for the next setup.
“A man’s got to know his limitations.” -- Dirty Harry