VERY RARE JACK O’ LANTERN PATTERN FORMED!
Here we have a textbook Jack O’ Lantern pattern with SEVEN teeth which strongly confirms the validity of this setup. This is a once in a lifetime chance to trade a rare pattern which usually only forms during the fall season, so don’t miss this opportunity!
How do you usually trade the Jack O’ Lantern pattern? Let me know in the comments below!
How do you usually trade the Jack O’ Lantern pattern? Let me know in the comments below!
Comment:
Sell setup formed on 5 min midway into today’s trading session. Got in on a few 4/17 $41 puts based on this setup
Trade active:
The bearish “M” pattern was formed with RSI divergence between the peaks.
Chart displays a broken neckline with a deep retest.
The price action of the retest forming a small but clear channel where I looked to sell the bearish breakout.
Chart displays a broken neckline with a deep retest.
The price action of the retest forming a small but clear channel where I looked to sell the bearish breakout.
Comment:
breakout occurred as expected albeit much quicker & stronger than I anticipated. Also, I forgot to mention the unfilled gaps, especially the most recent one, as additional reason to be short. Anyway, I got in on some weeklies $41p and $42p
Comment:
Big downside move blew right through the gap for a -8.5% move since my entry
Comment:
At some point I was up +100% on my contracts, but I decided to hold onto them based on this supposed trendline break to the downside
Comment:
I was expecting a retest to the trendline or $42.32 structure and then bearish continuation like this
Comment:
Unfortunately I noticed too late that my initial channel support was taken from only the fresh lows (pink tl) whereas the higher timeframe trend line was still being respected (black tl). On top of the tl horizontal structure held, so maybe it continues up within the channel, or maybe we get a good break to the downside.
Price has already made its way to within the range of the large gap on the hourly so we can consider it to be filled & look for possible moves to the downside. Tomorrow is a shorter trading session due to holidays so we might have to wait until Monday open for a significant move. At the end of today’s session I still hold my weekly 41 & 42 puts which are sitting at around +40% returns.
Price has already made its way to within the range of the large gap on the hourly so we can consider it to be filled & look for possible moves to the downside. Tomorrow is a shorter trading session due to holidays so we might have to wait until Monday open for a significant move. At the end of today’s session I still hold my weekly 41 & 42 puts which are sitting at around +40% returns.
Comment:
I think this triangle breakout might be a bull trap
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Possible intraday short setup
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Comment:
We need to break this key level to go down
Comment:
Price didn’t break down, but it can still turn around here. RSI is displaying strong divergence