Buying a Triple Bottom - Action-Reaction System

Jul 19

For the Action-Reaction System, double bottoms and double tops are treated as true support and resistance. Whether prices have a tendency to break that structure at some point is irrelevant to the problem of what the current trend is. The current trend may be moving away from them or moving to them, but they are just treated as another pivot of an action-reaction set. They don't change the probabilities, or if they do, what really matters is the output of thousands of cases. So when this structure of a triple/quadruple bottom is formed, the numbers stay the same since they are defined by the generality. At the end of the day, it is about isolating the noise, focusing on the hard numbers, managing the risk and trading the mathematics.

Jul 21

Trade closed: stop reached