
Second Wind — buying the dip inside a golden cross.
The 20 EMA crossing above the 200 is the golden cross — the best-known regime marker in trading. While it holds, Second Wind is a buyer of dips and nothing else.
Beneath a death cross the logic inverts exactly, selling rallies instead. The regime is a state, not a signal, so it persists while the market keeps its shape.
Inside a bullish regime the RSI dipping toward 40 marks a pullback. The entry is not the dip itself but the RECOVERY back up through it — momentum turning while the larger trend is still intact.
A longer 21-period RSI is used deliberately: it smooths out the short-term noise that would otherwise fire the signal on every wobble.
The RSI recovery levels are the timing dials — how deep a pullback is required, and where the recovery counts as confirmed. The RSI period sets how smooth that reading is.
The EMA pair defines the regime, and the ATR stop multiple and target R:R shape each trade’s risk.
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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.