Thought I'd publish a series of trades and the set ups I look for.
For want of a better description I call them descending triangle breakouts. This is the only pattern I ever look for and routinely occurs in daily, weekly, monthly charts.
What I believe is happening is that patient buyers, represented by the horizontal blue support line, are allowing sellers to exhaust themselves, the sloping red line.
I need to see at least two attempts at a rally, points 1 and 2, with failure.
The entry signal is always a white candle breaking into new air. Confirming volume on the entry day, week, month is great to have too, although not mandatory.
I'm basically looking for a controlled constrained market who's tightening ends in violence, the breakout signal.
I have variations that I allow through experience over the years ...
More to come ...
Feel free to post any charts that could be discussed.