Triangles are typically trend continuation patterns. The standard buying of breakouts during these formations is not a bad idea if you are feeling aggressive. At S.C., we have been long term for months but it is not in our plan to be aggressively on the short term.
We anticipate high probability opportunities IF this market, along with BTC , offers any retest of lower prices. This can unfold in the form of a failed range breakout on the side, or a higher low structure around the 423 reversal zone boundary.
We choose this more conservative stance because the 571 is still intact. This is the .382 resistance of the recent structure relative to the 838 high. It helps us determine if a broader movement is in progress or not.
Since it is not, yet, the short term is more likely to be in a larger range bound environment. Like I have written numerous times, bottoms are a process and that process offers plenty of entry opportunities if you know what they look like.
In summary, there is nothing wrong with taking a break out if the next leg higher unfolds. We will not call it as a trade because it is better managed as a day trade in light of the risk and speed of change in this market.
We navigate these markets according to the criteria set forth by our plan and so should you with yours. We also have to consider risk in light of the fact that our choices can also affect the actions of our followers which is why we lean more to the conservative side.
As the short term price action transitions back to , there will be a lot of noise. The most attractive opportunities will be the lows of this noisy range as long as a decisive new low is not established. Plan ahead for the possibilities and be prepared for those scenarios if they appear. If any swing trade opportunities present themselves, they will be shared with our followers.
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