Nice answer Dave, but let me add, in a trending market you can wait for support and/or resistance to get you back into the trend. For instance, in an uptrend we wait for resistance. Once we have resistance we know where we buy above, but resistance usually leads to a pullback in which case we're watching for support. Once we have support we can prepare to buy the bounce (not the break) as the market is likely to pick up the trend again.

Thanks for playing,

Erich