I stopped trading overnight becasue it can drift up overnight, stop you out, and then by the time our markets open the pattern falls right back in line with where we left off (in alot of cases). It was a tough lesson for me. I now take my signals only from day timeframe because there are different people and different psychologies during the US trading day as opposed to overnight psychologies and these patterns are based alot on the psychology of the trade
the L-side of the "W" for the bearish signal is not visible in this case due to the blue lines. thanks for the interpretations. still watching.. looks like a valid short bb
since i am looking for longer term holds personally I am looking at mostly daily weekly and monthly timeframes. I go to a chart and let the study find the patterns based on my Fib ranges for the various swings. And yes you must wait for the pattern to develope to point D because you really dont know what is going to happen until it does and then you know what may happen next . the pattern helps take out noise . In real time you do have time to react once point D is established but i am not day trading the futures right now. A nice russell short did trigger at 10:30 am CST which may have followthrough tomorrow (or not)
here is the range for the russell right now based on a bullish pattern on the 60 minute. So you can see that we can come down substantially and still be bullish...isn't trading fun and easy
just to follow up.. when the ES spiked up (huge move) .. the pattern simply vanished on my chart. obviously, this indicator will take some practice. apparently, it will plot on the last bar as long as it is within parameters.. but will delete itself when price moves outside the pattern. pretty cool.
SCHW CHARLES SCHWABB Bullish butterfly. I will consider this a buy if we can get a pullback to 18.50--18.00. I will be watching this
pdli Protein Design labs...Bullish "Bat" pattern triggered after some bad news. I do like the company but they have alot of issues to work out. I would like to see 18.00 area tested and hold before I take a position. Some have taken advantage of the drop in price already. People react differently to the same news. this is a bullish probability pattern. 18.00 held as support in March so if 18.00 holds all is well but if 18.00 fails it could be bad. That is about all we can know at the time
BB, the russell today speaks to your point. The 2 green lines are point X and D. that triggered the BAT pattern yesterday. Today X was NOT taken out yet so bearishness still valid for now. the patterns help to give absolutes to a very abstract universe.
chs Chicos bullish crab patternon Daily chart has formed on high selling volume. if you like the clothing industry this could be a good longer term entry point....a break below point D would not be good for the long side.