This is a followup to an idea i posted a few days ago that worked out nicely so far. since i already reduced my risk in the original trade and i still like being long here, i will try to use this setup here to put a little more risk in the market and increase the positionsize that way.
so the idea is to buy the breakout from the consolidation (if it breaks to the upside) or the breakout from the white box which would then be more of a head and shoulders pattern. stops at least below the consolidation
BC retraces well over the 88.6% of AB, close enough for government work? What sort of margin of error do you use?
SergeantPringles
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well for me its valid as long as C isnt violating A. but im also not a pure patterntrader. i only use them in conjunction with other technical tools or my overall bias of the market.