Next is a series of charts that highlight mini-patters that I am starting to notice. I am not sure where this study would take me, but I certainly find it useful to drill down into the 3min chart and observe the similarities of certain pattern formations.
XTO highlights roundish continuation patterns that mark periods of rest during the down trend.
SOLF highlights a triangular formation before a BO. Consolidation takes place at the upper right corner of the highlighted area with a few bullish bars before the BO.
PBR is one of my favorite charts here. It is also a triangular formation before a major drop. Interesting to note is how price travels from the upper left corner to the lower right corner of the highlighted area, and at the very bottom of the right corner it prints a few NRIBs. Additionally in this chart, the NRIBs are below the previous day low, which makes this setup even more powerful.
WB marks a roundish formation after a mini rally.
GG marks a roundish continuation pattern.
5 comments:
CELG
i wuddnt take that set-up near lunch time... i paid that lesson long ago, when sumtin would look good going into lunch and then i'd spend 2 hrs watching it spike & chop. CELG is basically in no man's land and drifting up at lunch.
with the aid of hindsight, its failure to make a lower low later in the day would have been a tradable set-up with good R/R.
ive mostly been hitting the beach ;)
good luck!
Thanks for sharing your experience.
Are you saying that you would not take "any setups" that trigger around lunch or just this particular one?
Also, you said: "its failure to make a lower low later in the day would have been a tradable set-up with good R/R."
Where would you have entered?
Cheers,
I like to watch MFI(14) when day trading. Sometimes MFI will get to 70 when the stock is going sideways. The buyers exhaust them selves before the stock breaks out. MFI was approaching 70 before the break.
Which chart anon?
CELG
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