Tuesday, July 26, 2011

Wedge pullback



A mid-day low momentum three push pullback is a wedge pullback (WP) and usually is a good entry. On a trend day, this move will usually end close to the ema. On a trading range day such as today, it will usually give a three push fBO of the previous swing low (b52 broke below b27).

Often this may be a G or G2 trade as well and is usually a high probability trade given previous trend in the same direction. Often the WP makes part of a complex mid-day pullback.

5 comments:

  1. cad, did you buy close of b8 on 1Rev, 2nd entry to get 6pts, can't imagine you held till afternoon BO. Thanks.

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  2. JJ, I actually entered on the close of b8 and exited near the high of b34

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  3. Great trade, tks for clarifying. Good job.

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  4. Cad, from high of 22 bar 38 was an a2 that failed on 40 and subsequent break out of 40 lead to a wedge reversal at 52. is my understanding correct or am i missing something? thanks.

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  5. Cad, from high of 22 bar 38 was an a2 that failed on 40 and subsequent break out of 40 lead to a wedge reversal at 52. is my understanding correct or am i missing something? thanks.

    ReplyDelete