This concept - not setup - stems from Shane Blankenship, my former mentor of MG.
I use this analogy in many situations, where the market just pressing price, up or down.
What's important here is, the release of the pressure.
See that one wide range bar? This is "interesting", something important is going on here.
Now, since every breakout trader is long, they (Market Maker for this one Stock) will most often try to scare them out by letting price fall back like cooled steam falling back from air to ground.
Taking this analogy as a "CONCEPT" and not as a "setup", gives you the freedom to reapply it in many other situations and trades.
(Thank you Shane, your the real Master...)
P!
...and allways keep in mind - never ever ever risk big, because everything we think can fail.
I use this analogy in many situations, where the market just pressing price, up or down.
What's important here is, the release of the pressure.
See that one wide range bar? This is "interesting", something important is going on here.
Now, since every breakout trader is long, they (Market Maker for this one Stock) will most often try to scare them out by letting price fall back like cooled steam falling back from air to ground.
Taking this analogy as a "CONCEPT" and not as a "setup", gives you the freedom to reapply it in many other situations and trades.
(Thank you Shane, your the real Master...)
P!
...and allways keep in mind - never ever ever risk big, because everything we think can fail.
Comment:
Since price went out of the fork, I built a even more simpler story - DoubleTheRange:
Comment:
Cooking...
Comment:
Center reached and turned below again...observing...
Comment:
Up Up Up...
Still lying and hunting for the bounce.
Having patience like a Cat at the Mousehole...MEEEOW! §8-)
P!