Greater chance of a profitable trade. So in a pennant, you'd actually wait for it not to just break out, but to go to a price below the lowest part where the pennant started?
Exactly, same on a flag or trianlge as well. It is not uncommon for a false breakout even in the way you expected it to go. still have not gotten the email. I am going to PM you.
Finally got set up with my dual monitors, how could I have waited so long! I can now see what I am doing without mouse clicking like crazy.
4RE, I have been following this excellent thread for about a month and have been trying to understand how you determine your entries and the ranges you think it will run. I can see how you picked the 1314.75 long entry for today but I see some long standing resistance at around 1316. Does Weds run through this point negate all that? Also, you mentioned that you use a 15 minute chart when you determine the entries, and some times a daily. Do you also use a smaller time frame to find the smoother moves? Thanks
C&S, Thanks for the questions. I think I have been asked this before but this time I have a chart which should clear this up. Question 2, No I don't use a smaller timeframe when charting but I do look at a 5 minute chart while trading sometimes. The 15 day 15 minute is the shortest TF I use for charting. Hope this helps and wlecome to the journal, Gary
currently 6.75 pts down after 2 trades (net, as 2nd was double initial position), will wait for the pennant to resolve itself one way or the other and then will take the 3rd trade, it will be the last one if it results in a loss.