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The elusive Bat-Wing -- a consolidation pattern ...
It's sort of shaped like a double bottom but it happens after a run up.
It doesn't suggest any directional bias but it does create a support & resistance channel.
It's a mixed signals chop machine that you usually can't recognize until the last leg.
High...err...hello
Trending nicely with larger volume since Jan's bottom. Currently absorbing Mar's run up.
Price is @ the 50 sma with Stochastic heading O/S... probably a good time to enter.
Looks like when it runs, it does so strong for a week or so...(see the 2 rallies in Jan and then again in Mar)
Good evening
ACB
Mix signals your thoughts
A 2B bottom followed by an MT SLING ...Good for $50...
Bear in mind I'm almost always a bull (in my T/A bias)
Positives -
I see an inverted H&S price action pattern (Dec into Jan) since Dec's drop...
Price was 1st stopped by the 200 MA then supported (somewhat) by the 50 but now is above both...
The RSI has since stayed above 40-line and the MACD EMAs have crossed upwards...
Price is at resistance here - I'd be in on pullbacks, expecting support in the area between
the two MAs and look for a breakout, then look for the MA golden cross...
IMO, the Wall Street economy is now following the Main Street economy and I think
the majors have a lot more room to go as more positive news comes out...
I use the e-mini futures as proxies for the major markets:
A double bottom... not quite a 2B Dragon but still trade-able.
An equal or lower low was only 'almost' there so divergence wasn't really a factor...
The "longer term" rising MACD EMA signals (MacTrend) was the deciding factor
along with the stochastic slingshots -- MTSLING --
20 points or $100 per contract is not too shabby for Sunday night.
Always play by the rules
Simple Rules and Simple Charts
Study price action patterns and indicator patterns combined with multiple time frame charts.
The idea is to give yourself better odds of success when choosing long entries.
--->How it's done<---
Why use automatically generated TARGET+STOP-LOSS bracket orders?
Because extremely fast markets can happen at any time - -
by the time you can react to them, you can lose your shirt.
Got a good fill expecting a 2B...
Price then moved up which gave me time to raise my Stop-Loss ...
Then out of no where price dropped 10 points within 1 second...
...this example saved me $50...
Early morning 2B... price action remains the same across all time frames
but the indicators will show differences.
Stochastic and Mac Histos react much quicker to changes in price than the MacEMAs.
The longer time frames produce entry signals a bit later than the shorter time frames but the "longer the stonger"...
The 2B bottom reversal PRICE ACTION pattern ...
Look for what the chart can tell you ... even on this 2500 tick-per-bar snapshot you can see clues
to a potential reversal very early in its development.
The white arrows were added in MS Paint. they were added AFTER the 2nd leg of the double bottom printed.
They align with INDICATOR-to-PRICE divergences (DIV):
Multiple divergence signals printed WHILE the 2nd leg formed.
-- in the price pane -- DIV on the LSMA histogram
-- in the study pane -- MACD histogram DIV, MACD EMA DIV and Stochastic DIV
Suppose you bought a single contract @2713-2714 and sold it @2718...
The resulting profit would be at least 4 points (or 16 ticks)
-- in cash terms that equates to $200 (less commission).
Consider that only $500 is required to be in your account in order to make this trade.
But you are not necessarily risking the entire $500 to get the $200 return...
You can stipulate a stop-loss below your entry price of any amount, for example:
-- If you stipulate a 2 point (or 8 tick) stop then you are risking $100
for the $200 return.
Which would be a 2-to-1 reward-to-risk or a 100% gain.
Persistent P/A pattern -- the 2B
Sometimes they may not be apparent on your entry chart:
Sold a trade before the 2B formed, was not "with it" enough to take the 2nd offering...
Often 2B patterns are more apparent on higher time frames, allowing for relatively low risk trades...
These charts also show indicator divergences at the Dragon's front legs.
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