══════════════════════════════ Since 2014, my markets approach is to spot trading opportunities based solely on the development of CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝 ══════════════════════════════ Hello Traders ✌
After a careful consideration I came to the conclusion that: - it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment; - since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant; - the information that I think is important is very simple and can easily be understood just by looking at charts; For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart.
Thank you all for your support
🔎🔎🔎 ALWAYS REMEMBER "A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist" ═════════════════════════════ ⚠ DISCLAIMER ⚠ The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
Not sure about this one. If it can't break and close above 495 we could see 475 soon.
TheArtOfCharting
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Hi @nen, Your valuable comment allows me to better explain why I made this post. For me a strong close (which has not happened yet) above 491.50 is enough to consider a breakout as valid but this is rather subjective so I have no objection to waiting for 495.00. As with any breakout, I always expect a possible re-test of the boundary line so, a retracement to 485.00 would be normal for me. Even a hard re-test (a short re-entry of price into the pattern without invalidating the breakout) is also always possible but the tolerance depends on one's Trading Tactics and Money Management rules.
The main point I want to highlight here is that there is a pattern category that is called "Launching Patterns". These patterns are those that usually form near the boundary line, above or below which, you expect the breakout of the main pattern and are often used as an opportunity to enter the market, with all due risk management precautions, in advance of such breakout. In this particular case: - the main pattern is a Rectangle and therefore both directions remain, at the moment, equally possible; - the Head and Shoulders has formed in the lower part of the Rectangle and offers both an opportunity in itself (the target is well within the main pattern) and an opportunity of pre-positioning in case an upward breakout of the main pattern; That said, my very personal Tactic in this situation depends strictly on the fact that my personal bias is bullish until proven otherwise (eventual downward breakout of the Rectangle). Therefore, I see the Head and Shoulders as an opportunity to slowly build a position that, hopefully, allows me to have a free-risk trade on the main Rectangle in case of a bullish breakout. My initial size is the bottom range of my Trading Plan position sizing rules and so I am perfectly fine even in case a deep retracement hits my stop loss. Thanks for your comment!