The pattern you just described is normally referred to as a 1-2-3 Bottom. Also works as a 1-2-3 Top. It was the first pattern I ever traded (thanks KR lol). Then of course I went and tried to muck everything up with indicators. I say add it. Just don't enter with guns blazing because it isn't a trend yet. Piscuy- I'll add some examples later....gotta go to the gym
As a top and bottom picker at times, this is where I will often take an entry and then use the HH for confirmation if it breaks then it is most likely a good entry. Stop is placed below the HL. Chris
Actually it must go above the HH (in the case of this pic) to be a real 123 bottom. I too am thankful to KR! Chris
Hi guy when i trade i pay attention to the HH HL too but for an entry but I keep an eye on the big picture, it keep me out the trouble, example on 17-09 around 11 formed a 2T on down trend but I saw on two days chart it was near the low of the previous day..so to me is it a no no entry
I realize this is a basic question, but I'll ask it anyway. In your definition of a HH/HL(or LH/LL) trend, how many bars should pass between peak and trough? Originally reading this thread, I thought you were talking about consectutive bars. In looking at most of the charts posted here, it seems you are looking for a trend over a greater number. Not all charts reflect this, as it appears some are attempting to trade based on a 2 or 3 bar trend. Any clarification would be appreciated.
I only count a break when a bar closes above or below the area in question. Needless to say this is highly dependent on the chart type/size. Anek
Same type of spill from a few days ago. Just wondering how you would have played it Anek or if you would have. Perhaps a TL break? I could understand a clearcut signal of the continued short closing under that last major pivot. ~Cx
Think you are confusing previous bar comparison to support and resistance areas. Let me know if this clears it, if not I will post a detailed explanation. Anek