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Short term PD and ND

Short term PD & ND is pretty much the same as the usual PD & ND, the main difference being that it is only an indication of a short-term reversal, and is in no way a major signal for a top or a bottom.  In Figure 3, we can see a three-peak ND top, which is only across 20 minutes - so no action to be taken here.  The short PD bottom indicating a short-term reversal confirmed a “no action” choice.

"Gamble" entries

As with all aspects of this strategy, simplicity is the key.  A gamble entry is simply taking an entry from anything other than a safe entry from a pullback to the 100 EMA.  The most common “gamble entry” would be to enter from a PD or ND; instead of just exiting at the PD or ND you would look to take a reversal entry at this same level.  On a gamble entry, reduce your risk. IF the 100 EMA later confirms your entry is correct, increase your stake to "normal size" by adding another half stake.

Other examples of this kind of entry would be an S/R or R/S switch, a head and shoulder reversal, or a double top or bottom. However, in all cases the target price should be taken into account, as a small target would not make the gamble worthwhile, and a safer entry will be worth waiting for.

S/R and R/S switches

S/R or R/S switch is the change in support to resistance or vice versa in RSI.  There are a few good examples of this.  Figure 4 shows a close up of a classic R/S switch. If you look again to Figure 1, both an R/S and S/R switch in both CCI and RSI can be seen very clearly.

An R/S or S/R switch can be used in the assessment of a gamble entry.  In Figure 4 we can see a change in the resistance becoming support (R/S switch), but in this case it is coupled with a PD bottom giving more strength for the gamble entry to go long, later confirming a safe entry from the 100 EMA.