I continue my learning experiments with mini-H patterns. For these setups, I am using the 3 minutes chart, which is fast enough to print these patterns clearly, but not as fast as the 1min (which may introduce some nice). I think the mini-H patterns work best when there is an established trend (which is not the case with this trade).
It is interesting to note that the curved part of this pattern needs to form a dome-like shape and has to be as round as possible. Ideally, that round part of the pattern would find resistance from an MA or PP line. In today’s ACI trade, price is unable to close above the downsloping 20EMA. Another success factor is that the bars prior to the trigger bar printed long-upper shadows.
Additionally, I believe that the safest entry point is when price breaks the base of the H (which is drawn as think black line in my chart), but in this trade I followed my gut feeling and entered before that.
5 comments:
Nice work Anarco!
I'm not seeing the H in question. From what time to what time does the H form?
Thanks
Hey Jamie~
I see the H starting at 1:21 and breaking the base of the H (thick black line on my chart) at 2:24.
In the future, I want to highlight the mini-patterns better in my charts, but I have the graphic program installed in another computer, and that makes things a bit inconvenient.
I really like your LEH trades today!
Cheers,
Thanks Anarco, I see the h now. I was looking for H.
couldda used H&S projection as potential target?
Good eye qqqball! I did not see the H&S until now.
My initial target was the swing low of the day, which matches very well the measured move of the H&S pattern. But, price did not make it there. Tomorrow, I'll draw the Fib Extension to see where price found support.
Thanks!
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