The first chart is the daily timeframe with the PP at the green line. FMCN was on the focus list Tuesday night, but didn't break until today.
Initially, I was looking for a B&B setup at the blue line. However, as time wore on it became clear that each stick was offsetting the previous one - green, red, green, red. This type of price action is totally unreliable in my opinion. Rather than watch it tick by tick, I decided to place a buy stop order above yesterday's late day highs. This gave me a much wider stop, but a more reliable setup.
When the third BO bar started printing red, I took a partial. FMCN retraced 38% which is normal after such a big move. When price subsequently closed back above R2, I reloaded. It started slow, but then we got three consecutive WRBs and a bearish tweezer reversal pattern - say goodbye and thank you. That second bar in the tweezer top pattern is also a bearish engulfing bar so there was no chance for a third wave.
5 comments:
I caught this trade, thanks to your help.
How do you identify what a tweezer top/bottom looks like. Could do a post on how to identify it-- if your have time one day.
No problem RC
I'll do a post on my favorite candlestick reversal patterns. Soon.
Jamie, thanks AGAIN for the work you put intop your watchlists and dummy lesson!!!
Thanks Zoomie, Appreciate the feedback.
As always, thanks Jamie. Looking fwd to your post on candlestick reversal patterns.
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