For the sake of explanation I make this final post related to the expanding triangle pattern or megaphone. Why do I grab my 6 or 7 points on the first leg down? Why not hold through the PB and stay in? Why should I? The PB reached nearly back up to my entry. My argument is simply this. Best to simply lock in my profits then wait for the PB to finish then short again on a signal for the second leg. That way I lock in my profits avoid a SL or BE if the PB happens to reverse the trend. In addition, and this is very important. On the second leg down I am using my previous profits (at least a portion of them) and compounding my gains during the second leg. Think about it! Finally the second leg give me another good gain of over 10 points. And if I exit on first leg..grab my profits..wait thru PB entry then short on the second leg and I happen to get stopped out on the second leg I am still ok and have a profit on the megaphone pattern simply because I locked in my profits on my first leg.
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