Australian (ASX) Stock Market Forum

Reply to thread

There Are Many more places to look.

There are a great many patterns but by far

my favorite is Consolidations. In Price/Range/Volume 

Everything happening IN Patterns leads to what Happens 

OUTSIDE of Patterns.

More often than not it reads IN CONTEXT with clarity.


A consolidation is nothing more than price stability in a timeframe, which, will eventually break down to news/whatever, and become unstable. This instability is the move to a new point of stability [higher/lower, the trend].


Trading is simply recognising that price stability is ending.


Whipsaws are the enemy: they suggest that price stability is ending, when, in point of fact, it hasn't. The key then is differentiating the noise [whipsaw] from the signal [trend away from stability]. Once you can do that consistently, well you are home dry.


jog on

duc


Top