I take it you must be using some kind of auto stop software to set the protective stop when your preloaded trades execute. Is this correct .
I like this thread so im dusting it off and moving it to the front of the line. Margo, hows about some more stok piks this weekend bro?
randynutts, I suspect your definition of getting hammered differs from mine. I did lose a little over 3 points, however, which is more than I normally do. The gap up was a killer, but that's part of it. Regardless, my strategy will stay the same and I'll trade the same setup again whenever I find one.
Winston, Broad patterns occur when the tops exceed the previous tops only to pullback and consolidate and then peek out at resistance yet again. Each breakout and subseqent pullback gives the appearance of a failed breakout. However, the stock or index simply pulls back and then rallies again. Try to think of broad patterns as trading CONTRARY to most things you already know or have learned. In other words, they will test your patience, can give you bad habits, and often make you chase things when you shouldn't be. In my opinion, they are the most difficult patterns to trade. The shorts get flushed on up moves. The longs get flushed out on down moves. Noone has any conviction nor control. If you're daytrading, you just have to act fast. If you're trying to take position trades, be prepared for some serious volatility.
In keeping with the educational nature of this journal, I'm going to post the trades I've taken over the past couple of week that were initially posted here. I'll try to explain why I took the trade and what my reasoning was, but most of my efforts will be directed to a chart.