Classic Geometric Patterns and Narrow Range Setups

Quote from inandlong:

In the macro-term I don't believe stock markets are manipulated, but when you see charts like this - and you see them all the time - the micro-term suggests a different story.

Special thanks to Uptik. :)

Hey jem, do you visit www.yamahajetboaters.com? If not it's a great site.
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no --- thanks for the new bookmark. I look forward to checking it out.
 
Two days ago I posted the SEPR chart pattern. The next day the low breached the lower boundary of the triangle slightly but closed within. Today's range was within the pattern, also.

But let's presume in your own scanning that today is the first day you saw SEPR. You'd have to draw the pattern as I have it indicated by the dark red lower boundary. So is there a material difference between today's pattern and Monday's? I don't think so.

The purpose of drawing these patterns is just to help you see the consolidation. Yes there is some statistical hint as to direction with some of the patterns, ie., some are considered continuation and some are reversal. But you don't want to get hung up on that. What you want to do is trade the break.

The safest entry will occur outside the range of the first day of this pattern and on strong volume. And it is not uncommon for pattern breaks to retrace to the broken boundary before continuing the move.

Btw, today was an NR7ID. Also, I'm a believer in moving average support and resistance. Looking at this chart, one might conclude that others are too. As such, beware of a breakdown with the 20sma just below. It will be interesting to see if price touches the bottom of the pattern the day the average does. For fun and potential profit, I'm going to buy it right there if it happens, and be quick to sell out and reassess if the support is broken.
 

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Flat out lucky today.

SEPR daily: morning gap long 3 pts.

Sometimes you get lucky and everything goes your way. But had I traded this in the most prudent manner, I wouldn't have been successful, only because I wouldn't be in. However, I said I would buy the 20 sma if it came into play a few days ago and I did. I confess that I didn't hit it with but 2k shares because I don't really know this stock. What's more, I sold half about midday yesterday for a nice profit, and held on to the other half to see how it would play out. Well, I got lucky with the morning gap, took it and am now flat.

By far they don't work this way very often, but it's nice when they do. A few notes here though. First, the 20sma provided unbroken support moving up into the pattern. Second, the redrawn pattern was about 21 days long with the breakout action occurring between 1/2 and 2/3 into the pattern. Volume never really surged, until this morning - so again, if you weren't in it would be no fault to you.
 

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I dont see much talk here on ET about inside bars, and so I'll be posting charts and sim trades of inside bars on FX only, no smaller than a 1hr time frame using no indicators

Here are some I found tonight. I'm new at trading these, so if anyone else has a few yrs under their belt trading ib's, id like to see your posts here.
 

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