Great analysis. I'm also of the opinion that the market is in constant flux. Hence detecting the underlying market rhythm is so important. I just want to add that it's worth noting that the market moves from one extreme to the opposite extreme. There is no middle ground where the bulls and the bears can compromise. It's always "my way or the highway". With that in mind, it becomes clear why bull trap and bear trap are such an effective trading strategy.
When I realised that it's pointless holding for a runner today I switched to 1 minute entry/target and this was one of the trades. Self explanatory.
Oops! But then again, you have both lower low and higher high (perhaps reverse triangle or half diamond formation, which is usually continuation pattern??). That completely throws me off.
This is the perfect example of the Trader Vic 1-2-3 (or the Ross Hook, depending on your preference).
I think you are trying to find patterns within the price movement when the DTRP is a pattern in itself.
One question I'd like to throw out there (especially with respect to the patterns discussed in this thread) is: how do you use volume and time in your analysis? Anecdotally at least, I've always noticed volume spikes at turning points. Is this a requirement for a reversal or am I just seeing what I want to see, ignoring all of those when you get a reversal and there isn't a volume spike at the lows? Or even those times when you get a volume spike and what initially appears to be a reversal is more of a pullback prior to a trend continuation. I've seen experienced traders on this forum (such as IamNobody) post that they didn't find volume useful at all when they built their system. Bear in mind that the (filtered) data feed I use in my charting comes from Interactive Brokers, so I don't even know how reliable the real time volume data I'm using is versus a specialized unfiltered feed such as IQFeed or from some other provider. Curious to know if anyone has made the comparison in real time and found that better data generates different signals, or if the tiny differences in volume etc don't make any difference in the big scheme of things.
Nodoji, LOL. It is always enjoyable to see the amateur Bull (who bought at the "retracement" at D) run for cover and sell their shirt when their SL hit at S2 which is just below D. Their miserable provide a free ride for my short at D.
The Bund is currently in the process of forming a corkscrew on 1minute chart. Need to see the ascending triangle form here to complete the right side of the pattern... Edit: limit order to buy at 156.77 with stop 156.72 Edit: Long 156.77 (very small trade), stop at 156.72