I woulda covered at the previous high (100%), and that pattern scares me for some reason. I'd stay away.
Using modified Gann swing lines, the chart turned positive (or continued positive) when the close was higher than a previous swing peak (as noted on chart). Buy on swing pullback following a 3 bar pivot with a buy stop order as depicted. Stop loss just below pivot low.
Here is the rest of the move. This was Pulte Homes daily chart. I will do more of this tomorrow and so on as long as there is interest. There is no prob not posting, I check the number of views anyway for interest. Sort of like an open interst level. Anyway, you guys all got a fat chunk of the move and that is all you can ask. Great job! Time for some kids time. PS: very cool CWU.
No, and sorry DT', and there are at least two reasons for this. One, I would have to do it manually.... and that would be waaaaaaaay too much like work. Second, and really more important, is that the exit is discretionary, ie., requires the skill of the trader. Much like this exercise demonstrated, we all saw the same entry opportunity, but the choice of exit varied among traders. My typical exit choices for this type of trade are the same as those I posted under the trading the 15 min chart thread. They are a trendline break, or a reversal pattern. My point about the line is simply that imo the exit is more important than the entry. I say that you can draw a horizontal line that begins on the most recent bar, and make money trading that. I was calling it a random entry because you can do it on any instrument any time frame, without aid of previous s/r levels, indicators, news, fundamentals, etc. However, this upsets the "random" fanatics who are incapable of opening their minds beyond what they have learned from a book. Now that the idea has been demonstrated, and since the market is in a dead zone, a trader can easily do this himself all day long, and see how you do. Come to think of it, one would probably get the same results he would get if he were range break trading. The bottom line for me is you must be in to win. Cost of doing business is sooooo cheap these days that reversing positions is very affordable. So draw a line at the close of the most recent bar, then whatever side the close is on the next bar, get in that direction. I like using closes because the intrabar action is noise. Given that, it is important to pick a time frame whose average bar length is one that fits your risk tolerance. Looking at the chart in this exercise, you see I drew the line on that white candle and the next candle was an inside one, but it closed below the line. So the initial LINE position was short. The next candle, reversed the position, creating a good sized loss initially. On a 5 minute chart this wouldn't have been as expensive as it was on a daily chart.