The Erection Pattern

The erection pattern reared its ugly head on the Kospi yesterday. How does one profit from the erection?

<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3060669">

 

I've seen that before...it's the MM's way of saying what he has in store for me.

 

Try a new approach. Don't be so hard-on yourself.

 

Wait for the the accompanying right testicle pattern, they get heavily short.

 

three minute bars... a very short lived erection.

 

Looky here. I figgered ol' Bone would show up on this thread.

 

You can profit from it, but it takes balls.

 

The pattern started with such momentum... but failed off quickly.

An exhaustion of order flow.

 

I think you wait for the blow-off, and then get short as it starts to deflate.

 

The pattern will not stand up over time.