
The entry sets up at P so it looks almost perfect. Price consolidates at P with a series of higher lows within the initial trend line. After breaking out, price makes a vertical move higher on accelerating volume = expansion. At first I was thinking flag pole, but the tweezer top foreshadows a reversal, so I take a partial to lock in some profits. The trend line should hold as support, but I draw in my Fib. retacement lines just in case. The retracement takes place on declining volume and stops at the 50% retacement level.
Once price makes a higher high, I start tightening the stop. Eventually I have to draw in an accelerated trend line because price moves too far, too fast. Once the accelerated trend line is breached, you can exit the second half. I missed it and ended up staying in the trade until the original trend line was breached after one final test of resistance at $78.50



1 comment:
Great...add your fav Canadians: eca su tcj
Post a Comment