Bingo! nailed this breakout by using GMXR long. Don't listen to anything but your charts. That's what pays the bills. Bulls or Bears each have good valid points on why we should head higher/lower BUT at the end of the day, only charts pays the bills, everything else is just noise.
2 comments:
I am interested in hearing how you trade a formation like the one that the russel formed before it broke out to the upside. Do you simply wait for a breakout and take the trade immediately, whichever way it goes? Or, Do you expect the pattern to breakout either up or down? Lets say you were expecting this chart to break out downward, would you buy this breakout to the upside and reverse your stance, or would you expect this breakout to the upside to be a false breakout and wait for the correction? great blog btw.
hi paul: the pattern i highlighted is the 60 min chart of the russell small cap index. that pattern is called a symmterical triangle and is usually a continuation pattern of the previous trend(which has been UP). so even tho you need to respect a breakout or breakdown, odds were much higher that we saw a breakout higher, not lower. if you missed it, that's ok, you can just look to buy into weakness. we were long GMXR as an overnight hold(ONH) because of this pattern. i really wanted to be long before the pattern broke out. get in ahead of the crowd so to speak.
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