You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Learning to read Price Action with P&F Charting
- Thread starter HolyGrail
- Start date
Quote from HolyGrail:
You always draw the line regardless. Whether that line has meaning will not be determined until you get a second signal.
Thank you, but what about the entry rule?
http://www.elitetrader.com/vb/attachment.php?s=&postid=1850304
Quote from zanjani1:
HG,
What do you use to scan for p&f chart patterns?
Although I have a scanner for pnf signals, I don't use it. I like to look at individual charts and anticipate the move. An example is the hewlett packard chart. I don't want to wait for a scanner to let me know that HP already created my pattern, I want to have an order in with my broker at the exact price the pattern is created.
Quote from HooLee:
Thank you, but what about the entry rule?
http://www.elitetrader.com/vb/attachment.php?s=&postid=1850304
In that example you have a failed double bottom buy well within a well defined uptrend. If you were NOT already in the uptrend trade, then yes of course take the trade because it is a good signal.
What I am talking about is when a NEW MAJOR trend is potentially beginning. That false double bottom is a pullback from the trend. It is nowhere near the real upward trend line.
You don't know for sure if you are going to have a new trend until the old one is officially history.
I'm really confused by your question so I may not be answering it properly. If we are in an uptrend I am only looking for longs and vice versa. Since that chart was in an uptrend and I did get a failed double bottom sell, I would have taken it even though I did not have the second level uptrend yet. All failed double bottoms cannot have a level two uptrend by their very nature.
Quote from HolyGrail:
... All failed double bottoms cannot have a level two uptrend by their very nature.
You have answered my question. I like your failed double top/bottom setups. They sure are YOURS. I named them HG Bull/Bear trap!
A traditional or classic Bull/Bear trap is basically a failed triple top/bottom break, yours is a double. It happens more often, is good for intraday trading, although degree of confirmation requirement maybe higher than a classic one, imo.