
Recoil — the extreme short-term dip inside a long-term uptrend.
Recoil does not short. The 200-day average is the gate: price must be above it, so every trade is taken inside an established long-term uptrend and the playbook is always buying weakness within strength.
That single constraint is what makes an aggressive dip-buy survivable — it never tries to catch a falling market.
The 2-period RSI is a deliberately twitchy reading — it swings to extremes on a couple of bars rather than smoothing them away. Under 15 is a genuine flush, not a mild pullback.
The stop is unusually wide at 4× ATR, and that is intentional: buying an extreme requires room for it to get more extreme before it turns. The 4R target keeps the payoff in proportion.
RSI Buy Level is the severity dial — how deep a flush you demand. Lower takes fewer, more extreme dips; higher takes more of the ordinary ones.
The trend average length decides what counts as an uptrend, and the wide ATR stop multiple with the 4R target shapes a payoff built around a high win rate on a small number of setups.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by Timo. Past performance is not indicative of future results.