A pattern question

[romik]

What's the atr and spread?

 

[dartmus]

It's an early stage expanding triangle. It's likely to continue to chop wider with each whipsaw until a dominant trend forms. If it continues to whip and completes the triangle pattern then the trend that eventually follows should be huge.

5 minute ES expanding triangle. Sooner or later it has to break. Time of day and small scale of this illustration make it micro-structure which imo is often noise.

 

[Redneck]

I'm a new trader, I see pattern like this a lot in intraday line charts, and I'm really curious how successful day traders deal with it. What are your your entry and exit point? Will you cultivate a short price range between point A and B? Would you cut your long position loss at point C? Would you make a bet on point E? Thanks!

Your questions..., and this example - are a royal exercise in mental masturbation


How long is a piece of string

==========================

What kind of trader - range..., B/O..., something else

What's the overall context


Between A & B..., back to A - range trade it

C - B/O trade it

E - no reason to enter (based on this whatever it is)

If in a B/O trade (from C) - then @ E start identifying a place to exit so as not to give back 100% of the unrealized profit to that point

You didn't label the breach of $50.10 (back into the range) - why not - that could be a trade

D - is another B/O - trade it as such


In addition to overall context missing..., so is..., where the hell to set a stop loss for each trade


==================

btw - anyone telling you to enter at B..., hold through C...., or even hold to E - is an idiot

Range trade - when price in a range
B/O trade - when price B/Os

Never confuse the two


RN

 

[SunTrader]

Trading is not about feeling good. Although at times it most definitely is "good".

 

[dartmus]

anyone telling you to enter at B..., hold through C...., or even hold to E - is an idiot

Range trade - when price in a range
B/O trade - when price B/Os

Never confuse the two

Thanks for this.

2 thumbs up.

 

[El OchoCinco]

I'm a new trader, I see pattern like this a lot in intraday line charts, and I'm really curious how successful day traders deal with it. What are your your entry and exit point? Will you cultivate a short price range between point A and B? Would you cut your long position loss at point C? Would you make a bet on point E? Thanks!

Another way to look at this is that in a sideways range the breakout can reach a distance measured by the height of the range. So if the range height here is A to B, breakout can go from C to D as a target. Lot of discussions of measured moves out of a breakout discuss this but whether it is true or not is up to you to study these range breakouts and see where they go to (measured move).

 

[J_Smith]

I'm a new trader, I see pattern like this a lot in intraday line charts, and I'm really curious how successful day traders deal with it. What are your your entry and exit point? Will you cultivate a short price range between point A and B? Would you cut your long position loss at point C? Would you make a bet on point E? Thanks!

For a start, you are not using the best chart, so, how do you expect to make an informed decision that might put the odds in your favor!

J_S