A. quote "By having a solid foundation of how price action works you can then apply this to the most reliable patterns and take them to the next level." If I understand your above comment, the way this would play out is that when a common pattern forms, you wait for the last swing high or low of that pattern to be exceeded as an entry signal, as a general rule. A noted exception would be for a double top (bottom) which formed in the general trend direction, where we may enter with a smaller stop, perhaps on a minor trend break of the runup forming the second high. This simple concept, (if correct) realy simplifies playing flags, channels, head and shoulders, triangles and dt/db's. Triangles still get my goat a lot, as they sometimes morph into a broadening pattern as the indecision of the market continues. Beautiful day shaping up here in north florida. Hope all the good comrades of this thread have a great Sunday!
Anek, Piscuy, or anyone... Let's say it's a bull trend with a double top. Price moves down to middle low. How seriously do you take the break of the middle low? If price blows by the break? If price hesitates and then breaks? etc? I'm looking at time&sales, which I don't really know how to read, in hopes to give me indication of the seriousness of the break by seeing increased action. Also, are there behaviors like the above mentioned that help you to decide to wait for a retest after a break? -Tech
Missed the morning move on NQ. After analyzing it, I see it could have been AHG worthy. Not sure though. Found myself trying to trade channel breaks. Got hacked up. I think I'm just thirsty for action all the time. As you guys have seen from my charts, that's a big obstacle for me. I tell myself, "Patients, patients, patients." -Tech
Another question, When experiencing a chop zone. Do you avoid any setups that fall in that price zone for concern of price getting sucked into chop again? -Tech
Anek, Analyzing charts for me make the setups look easy. Realtime, that's a whole other story. Screen time I guess. -Tech
According to Bulkowski's excellent statistical analysis in his last book, the highest successful rate have rectangular breakout pattern and the symmetrical triangle, following by double bottom. Double top patterns are among the top of high failure rate patterns.
Gloves are off, trading all indexes at once. Double top, symmetric triangle break down. Another easy play. This time is for real. Arrivederci Anek
Was this an AHG pattern ? I just see a higher low then a break of a previous high and then to the moon .