Last night Tyler and I were chatting about the "top out" pattern developed by Trader X. And today, I saw one that seemed to be a perfect match, and although I am just starting to study it, this one seemed too good to pass. I entered on the break of the 3rd bar low, which closed below the half-way point between the ORH and RZ. I think one needs to be watch out for RZ acting as support, but if price breaks through that line, then the next clear area of support is the ORL.
I exited at $17.00 because it is a round number and potential support area. Price reversed exactly at that point.
6 comments:
Anarco,
Nice trade! I have been reviewing the pattern and what you said makes sense. Thanks for sharing. I like the risk-reward on SU.
Tyler
3:1 risk/reward is great!
Now we have to keep the profits consistent ... that is the next challenge.
Cheers,
Nice trade anarco.
Hey Thomas~
It has been a while!
How is your trading going?
Cheers,
Is this "top out" pattern the same pattern as "the h" pattern that you've discussed previously? If not, how do you define the top out pattern?
Dave~
The "top out" pattern is a reversal pattern and the h pattern is a continuation pattern. Check Trader X site for more examples of teh top out pattern. I just started trading it.
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