![]() Table 9: Buy wedges above the 200-day simple moving average except when buying a non-busted wedge and selling a busted pattern.Table 8: Buy wedges above the 50-day simple moving average.Table 7: Buying wedges with a short-term (up to 3 months) duration from the trend start to the pattern's start results in better performance.Table 2: Trade using non-busted chart patterns.Buy a busted descending broadening wedge and sell a bump-and-run reversal top ($20.97) Buy a descending broadening wedge and sell a busted head-and-shoulders complex bottom ($23.30) Buy a busted descending broadening wedge and sell a busted triple bottom ($29.85) Buy a busted descending broadening wedge and sell a busted three rising valleys ($30.35) Buy a busted descending broadening wedge and sell an Eve & Eve double top ($36.08) I put the expected profit per trade, per share, in parenthesis. Trades and how much money you might make trading a pattern pair. Expectancy is a way of gauging winning and losing The following list shows the expected performance of chart pattern pairs, ranked by their expectancy. Buy a busted descending broadening wedge and sell a bump-and-run reversal top (52%) Buy a descending broadening wedge and sell a busted Eve & Adam double bottom (60%) Buy a busted descending broadening wedge and sell a busted three rising valleys (69%) Buy a busted descending broadening wedge and sell an Eve & Eve double top (79%) ![]() Buy a busted descending broadening wedge and sell a busted triple bottom (84%) Here's a list of the top five performing sell signals, based on annualized gain (annualized because the hold time is often years, in parenthesis). On the sale side, you can sell the first bearish chart pattern which comes along, or wait for your favorite bearish chart pattern to appear and sell then. This articles assumes you buy either an upward breakout from a descending broadening wedge or a busted wedge (price breaks out downward, drops no more than 10%, reverses, and closes above the top of the wedge). The figure illustrates the idea for trading pattern pairs, where price is the red line and the boxes are chart patterns. Trading Descending Broadening Wedges: Summaryīefore I continue, when I refer to a wedge in this article, I'm referring to a descending broadening wedge.
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