Recognizing entry / exit signals and managing positions

Here is our entry chart showing the end of the trading day today 3/29/11 and the entry signals given. On our bigger picture charts, as explained yesterday, we are only allowed to take long positions at the current moment.

The rectangles indicate the entry signal, the arrows indicate a lower high being set, giving us an exit signal for the trade. If this lower high is put in, we should exit the position at that time, which usually ends up being one tick or so above entry.

As you can see on the chart, our trade setup involves a pullback on our entry chart with a low being set and then a trigger line being broken to the upside for our entry / a break out of short term trend. We place our stop below the swing low that was set, usually 5-7 ticks, but never exceeding 16 ticks. 2)

The reason we wait for the trigger signal is because rather than just entering at an arbitrary price, we allow the heat to pass by, and then enter once buying pressure resumes.