Hi All, I'm currently going through the Jeff Cooper video trading course (see http://www.tradersgalleria.com for more info) and have a couple questions I'm hoping you can help me with. 1. What does Jeff mean when he says "overbalance" in reference to a certain period on a stock price chart? 2. What exactly is a triangle pendulum setup? Thanks. -- Punter
I found the answer to the triangle pendulum, namely: "A Triangle Pendulum is a strong move out of a triangle pattern that follows an false breakout in the opposite direction." Still looking to hear what "overbalancing" means though from anyone. Thanks. -- Punter
I guess you have to buy his books to find out aha. I don't like too much these traders-authors ( many on tradingmarkets.com)who invent fancy terms to describe their favorite setups, most of those are rarely anything new but you think it's new because you never heard the term. For example "the triangle pendulum" you just told me about I call that a breakout failure (out of triangle). Nothing new.
Actually, I alreayd have his books. Call me a sucker. Anyways, yes, his patterns aren't new. What I like about it is the structure he lays out in using these patterns. Blindly and indiscriminately taking the setups wouldn't be a good idea. -- Punter.
I found the answer to my overbalance question via the web... It's a Gann type of phrase. It's essentially a retracement of a move in price and/or time. Thanks to all who took the time time to read my post. -- Punter