As of Friday (Jan 21) IWM has fallen out of a long range of distribution, produced both daily and weekly closes outside the trading range, and importantly has the potential to produce a large move. In this piece we discuss the trading range, mostly from a Wyckoff perspective, show multiple ways to start thinking about how far the move might progress, and finally...
At the end of August 2020, I saw that the GME price touched its historical low (the lower red horizontal line). At the same time, the "Diamond" reversal model was formed.
The breakout of the" Diamond " up on 31/Aug/2020 confirmed the reversal from the downtrend to the uptrend.
Next, I used the old-school tactic of "Measured movement" according to D. Schwager -...
Trading Rules
1 - Preceding Uptrend
2 - New Swing High Green Candle
3 - Lower Low Red Candle
4 - Lower High Green Candle
5 - Enter: Break of #3 Low
6 - 1st TP Take measured distance
from #2 High to #3 Low
7 - You determine SL & 2nd TP
