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Trading Concept
2R in hand with momentum
Ken's rule of thumb criteria for entering a second position in a positive trade. Criteria for entering a third position are 6R in hand plus momentum. Momentum is confirmed by looking at a momentum indicator such as the Moving average convergence divergence (MACD), a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. See: 2R battle drill for more details.