InvestorsHub Logo
Followers 43
Posts 4879
Boards Moderated 6
Alias Born 01/19/2012

Re: None

Friday, 05/18/2018 11:11:35 AM

Friday, May 18, 2018 11:11:35 AM

Post# of 353
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.


Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.