We like tight consolidations. The more frustrated traders get, the more potential there can be. If you have patience.
This is just a review for my own education, and to pay attention to the clues staring me in the face. I didn’t get involved with any trades.
1) Nearly a two month consolidation with two significant ultra-high volume days, on down bars, but price didn’t follow through. There are buyers here however. Even though we see the buyers are here, jumping in to buy with them would have been frustrating as price continued to chop around for another month.
2) We see bullish volume appear but the bar closes in middle of the range. A handy first clue, but not an encouraging result. The break out bar the following day provides the key. The buyers have waited & tried to get their demand filled, but they didn’t get enough, now they show there hand and start to buy through the consolidation, and closes above the consolidation. Buy at close, s/l at low of the bar.
3) Alternate entries, either a Ross Hook for an early entry, with 5 days chop, or wait for the flag to form, and buy. The close of the break out of the flag isn’t the strongest. A problem with either entry is a previous high in the back ground.
4) Previous high rejected & broken, provides another Ross Hook opportunity.
5) A couple more Ross Hooks, but can you take them so far & late in the move? They did pay off however. Maybe the first one got stopped, but 2nd one is good, especially the tail. Would you have taken the 2nd, if stopped on the first? Would you think it's too extended?
6) S/L and target management. Fixed targets would work, or manage stops via structure/pivots, if you think it has legs. The prior high would be a logical 1st profit target. Could re-enter if it breaks?
This is just a review for my own education, and to pay attention to the clues staring me in the face. I didn’t get involved with any trades.
1) Nearly a two month consolidation with two significant ultra-high volume days, on down bars, but price didn’t follow through. There are buyers here however. Even though we see the buyers are here, jumping in to buy with them would have been frustrating as price continued to chop around for another month.
2) We see bullish volume appear but the bar closes in middle of the range. A handy first clue, but not an encouraging result. The break out bar the following day provides the key. The buyers have waited & tried to get their demand filled, but they didn’t get enough, now they show there hand and start to buy through the consolidation, and closes above the consolidation. Buy at close, s/l at low of the bar.
3) Alternate entries, either a Ross Hook for an early entry, with 5 days chop, or wait for the flag to form, and buy. The close of the break out of the flag isn’t the strongest. A problem with either entry is a previous high in the back ground.
4) Previous high rejected & broken, provides another Ross Hook opportunity.
5) A couple more Ross Hooks, but can you take them so far & late in the move? They did pay off however. Maybe the first one got stopped, but 2nd one is good, especially the tail. Would you have taken the 2nd, if stopped on the first? Would you think it's too extended?
6) S/L and target management. Fixed targets would work, or manage stops via structure/pivots, if you think it has legs. The prior high would be a logical 1st profit target. Could re-enter if it breaks?