Well in either case, double top or ascending triangle, the market was most likely already in an uptrend leading into the congestion pattern. In which case, the breakout to new highs, preferably with a strong (bright green) bar would signal the continuation of the primary trend. There is an assumption in my response, that of a pre-existing trend prior to the formation of a consolidation pattern. If this assumption is false, then perhaps you can post a chart example of the pattern your seeing ?
Hey Guys, I'm doing very well with Anek's system. Perhaps it helps if you take it down to the most basic levels. Step A Identify the Trend, Use all the trendlines that you need Step B Patiently wait for a setup using those strong/weak bars he so kindly provided Step C Let price action take you out of the trade Step D Repeat Just because one entry did not work does not mean the next will not as long as the trend is intact. Another thing that helps is that the strong/weak bars on major trendlines are pretty powerful signals. It's crazy but it's hard to lose this way aside from a crazy day of nothing but chop. Godspeed, Daniel
Know your patterns NQ in the morning was nasty, extremely choppy. Then it produced a Head and Shoulders that failed almost instantly. Now, if you recall one of my favorite patterns to trade is not the Head and Shoulder itself but a failed one. God only knows how many bears were trapped on that thing today. Lucky for us, price action can tells us exactly when to get out without taking a massive loss when things don't work out. This is exactly why winners must be ridden as much as possible because things do fail in trading and absolutely nothing works all the time. How do we overcome this ? ....by taking only small losses. Back to my personal matters, just did not want to let this baby go by, they are a work of art. Anek
I'll leave the following topic as open discussion. Head and Shoulders at the LOD Hint: not the same as when they pop at the HOD. ....have fun. Anek
I'm pretty sure I've seen the Tradestation code for the strong/weak bars that Anek uses, but can't seem to find it. If anyone has it handy and can provide it again, I would greatly appreciate it. Thanks.
Here are the two paintbar indicators. Hopefully I've attached them properly and you can download them.
Daniel, Are you also playing any of the patterns, or are you just sticking with HH,HL and trendlines? How did you do today?
OK lets see HS at LOD would mean that if the pattern actually works the reward is almost unlimited since there is not much support is that correct anek?
Hi, Anek Not as many as one would think. On a three-minute chart (I don't use cv bars) there was little volume on the bear trap. Although I have my own approach to trading the NQ (I actually trade the ES more frequently), I do find your journal interesting.