Years ago, when I began trading, I was told the smart thing to do was to buy low and sell high.

Well, that is easier said than done, as I found out, because it is not that often that markets make extreme lows or highs that are clear-cut events.

Then, I heard that good traders do not care about picking tops or bottoms, so I adopted a philosophy of buying into weakness or selling into strength.

So, you can understand my point: When a general trend is going up, and it corrects, it is showing weakness. The idea is to find the level of support that price action can go to and still resume the original trend.

Over the years, I watched all sorts of market patterns, and the truth only became clear to me when I cut them down to very short-term events.

Here is one example of the market being a buy on weakness when the larger-degree trend was up at the time. It is a 5-minute time frame in the ES (S&P 500) during which the re-entry buy price came in when the market corrected at an exactly equal price to the preceding correction in the wave series.

Now, this is a regular thing that happens in the ES market because there are so many Elliott Wave followers.

It is just something you should be aware of as a trader, so you can monitor the market in the future for similar situations. They do repeat nearly every day in the intraday trends.

The chart in this article was just another instance of a trade possibility I told our trading room guys about in advance of its becoming a trade.

It doesn't cost you anything to look and learn, so I hope this is of interest to you.

Chart: 1:1 in a Bullish Trend

*Reprinted (and modified) with permission from Bryce Gilmore of Bryce Gilmore & Associates Pty Ltd (www.wavetrader2004.com )