Saturday, June 18, 2016 9:03:43 PM
Trend Line Break and Late to the party methods...
TLBs suggest imminent trend changes. Trend lines are reflections of Price Action
and can tell you what has been and what is currently happening with prices.
These next two charts show a couple of ways to use trend lines for taking long positions.
After some indicators had printed Signals, a P/A TLB was used as the TRIGGER to BUY.
This 2nd opportunity followed closely behind the one above...
It also uses a P/A pattern (a Money-on-the-Floor pattern)
which confirms that the TLB had indeed reversed the former down trend...
This example uses indicator Signals as the TRIGGER to BUY.
Often if you miss the 1st opportunity you get a second chance to enter the new up trend.
I call the above trade "Late to the party" because it's a 2nd entry in a reversal that's already underway.
TLBs suggest imminent trend changes. Trend lines are reflections of Price Action
and can tell you what has been and what is currently happening with prices.
These next two charts show a couple of ways to use trend lines for taking long positions.
After some indicators had printed Signals, a P/A TLB was used as the TRIGGER to BUY.
This 2nd opportunity followed closely behind the one above...
It also uses a P/A pattern (a Money-on-the-Floor pattern)
which confirms that the TLB had indeed reversed the former down trend...
This example uses indicator Signals as the TRIGGER to BUY.
Often if you miss the 1st opportunity you get a second chance to enter the new up trend.
I call the above trade "Late to the party" because it's a 2nd entry in a reversal that's already underway.
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