Tuesday, April 24, 2012
Same Pattern, Different Day
There was also a triple bottom in PCLN right before it ran 5 points. (You could have entered after the breakout wedge and still got 5 points.)
Also X was sloppy after earnings but eventually fell into a triple bottom and then ran 1.20
Triple triple triple -- the formation occurs regularly at major turning points. Your job is to know areas of major support and resistance before hand since these pattern won't work in an unimportant area.
Is your trading like this? Mechanical and boring? Or do you look for action? Look for exciting names?
I think -- for me -- the search for excitement is a huge problem and will lead to poor results.
Find a key pattern -- the market is chaotic and then suddenly -- briefly -- it will fall into a pattern and allow you to enter. Then it gets chaotic again.
Be boring, be profitable.