What if we trade patterns from technical analysis books in a completely different way?
• False breakout of the wedge
After exiting the wedge, the price updates the high, buyers take profit (sell), do not push the price further, we notice the exhaustion of purchases = enter short
• False breakout of the sideways range
After exiting the range, the price returns to it again. Those who shorted the lower border or entered from it by retest will exit trades. Shorts' stops are purchases that will push the price higher = enter long
• Double false breakout
An attempt to break through support was unsuccessful. The price returns to resistance with an attempt to update the high. We notice the exhaustion of purchases = enter short
• False breakout of the GiP
Those traders who shorted the "neck" of the GiP pattern did not see the desired price movement in their direction and begin to exit sales (buy). Short stops are purchases that will push the price higher = long entry
When trading such non-obvious patterns, it is important to see the overall context of the market and understand the logic of price movement
👍Is this kind of column interesting? Should we make more of these mini-educational posts?
