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Replies to #29706 on lowtrade
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lowtrade

03/20/12 1:14 PM

#29715 RE: Topfuel #29706

Not sure what your asking.

As you study chart patterns you will see each has a price level which needs to be passed before the pattern is concidered active.

Breakout is nothing more then the price passing that price level. Be it a support price level, resistance price level, or trend reversal price level. Once the line you can draw to mark support/resistance/reversal is crossed, breakout happens and the pattern trade is in play for reaching projected target price in the pattern.

Exhaustion candles have no rule saying the candle tail needs to be 5% or 10% or 60% above the candle body. It's the over all parabolic move judged for exhaustion. But the signal that exhaustion has been reached, is the red day following a huge climb without a stall. That usually ends with a large tail high the day before. I don't know how else to put it.

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Webwyrm

03/21/12 8:53 AM

#29733 RE: Topfuel #29706

Heres a nice example