Monday, February 27, 2012

precursor patterns:

 before getting a big selloff  --   often a H/S top or 3 bump pattern emerges well before.  In both cases, it requires THREE points to form the pattern.     

Waiting for these set ups results in a huge drop -- with virtually no heat upon initial entry.  In most cases the market is extended -- often 3 days into a rally or near a previous  resistance area. 

 The goal is to capture those perfect moments -- and  ignore the rest of the noise.

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