Wednesday, March 31, 2010

Determing Price Targets On Patterns

Find the pattern(setup) to trade: In the above example is an 'Inverse Head and Shoulder Pattern'

Calculate the difference between the top of the pattern to the bottom of the pattern(setup).... Then add that number to the breakout number and you'll have a good first target to work with.
This is not a perfect but it works more than most think.

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