G'Day Captain,
I can usually spot them now when the A and B leg have formed. They are the ultimate contrarian's trading pattern. The ticker is usually in a strong up or down trend so it's hard as hell as to pull the trigger when you first start trading these buggers. If they fail they fail big but if they trigger they can be enormous trades.
There are two types of entries suggested. One is thru X leg high on a close and the one I use is when price isolates at the D leg top.
I have attached my most recent trade which was RHC. I spotted this on August 26th
One chart on RHC shows how time can really show the pattern has the pot to be a good little earn.
It didn't go on with it but still a 10% play with the prospect of it going further but didn't
Another I spotted this year in July was CSL also attached.
I also use B/bands and RSI. I haven't put them on the charts so it doesn't confuse but if price isolates inside the top band then it's suggesting momentum has been lost and if div on RSI then the excitement levels go up for me huge LOL
I've also thrown in the s&p 500 at the GFC lows in 2009
Because our market is so small it is hard to get more than a few a year and the bigger the ticker i.e top 50 asx the better. The US market is usually full of them.
I haven't been trading much the last 4 weeks due to work related reasons so haven't been looking at charts but I'm going to be going hard core for the next 4 weeks, so as soon as I spot one I'll put the chart up and do a follow my trade thingy if anyone is interested
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(20min delay)
