Entry Patterns At Alert Zones
Enviado: 16/7/2003 18:34TradingMarkets.com
Entry Patterns At Alert Zones
Wednesday July 16, 9:29 am ET
By Kevin Haggerty
The primary purpose of this lesson is to give you something to keep on your desk which illustrates the most common Reversal Bar Patterns that most often precede a move in the opposite direction.
You will see these patterns at key alert zones (inflection points) such as Pullbacks to Moving Averages, Support/Resistance Fibonacci Extensions and Retracements in addition to Trap Doors (both ways) and Volatility Bands.
The second key point is to strongly emphasize that the alert zones are just numbers and you don't buy or sell the number. When the stock/future gets to the key zones, you should be looking to enter the trade on the Change in Direction Pattern, with reasonable stops to manage your risk.
Another key point I want to emphasize is that the sequence of your identification of potential extensions and retracement levels precedes and anticipates a reversal pattern occurring in that alert zone.
It is most important that you don't enter the trade without the Change in Direction pattern. It is a fact that it will be a higher-probability trade when it converges with the inflection point and the Market Dynamics at the time of your trades.
The following graphic illustration gives you eight common two- to four-bar patterns. There are other multiple bar patterns that form up a lot after the initial patterns shown below that I cover in my seminars
Entry Patterns At Alert Zones
Wednesday July 16, 9:29 am ET
By Kevin Haggerty
The primary purpose of this lesson is to give you something to keep on your desk which illustrates the most common Reversal Bar Patterns that most often precede a move in the opposite direction.
You will see these patterns at key alert zones (inflection points) such as Pullbacks to Moving Averages, Support/Resistance Fibonacci Extensions and Retracements in addition to Trap Doors (both ways) and Volatility Bands.
The second key point is to strongly emphasize that the alert zones are just numbers and you don't buy or sell the number. When the stock/future gets to the key zones, you should be looking to enter the trade on the Change in Direction Pattern, with reasonable stops to manage your risk.
Another key point I want to emphasize is that the sequence of your identification of potential extensions and retracement levels precedes and anticipates a reversal pattern occurring in that alert zone.
It is most important that you don't enter the trade without the Change in Direction pattern. It is a fact that it will be a higher-probability trade when it converges with the inflection point and the Market Dynamics at the time of your trades.
The following graphic illustration gives you eight common two- to four-bar patterns. There are other multiple bar patterns that form up a lot after the initial patterns shown below that I cover in my seminars