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Registered User
Joined: 1/31/2005
Posts: 4
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I have noticed that on a lot of different stock charts before a big breakout that there is a swing in price patterns forming a "W". Is there a indicator or formula that would help in calculating the probabilities of this? They seem to happen after the price reaches a high then falls back. I am sure that somebody has noticed this pattern as well and has already figured it out. Any help you could give will be greatly appreciated.
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Registered User
Joined: 10/7/2004
Posts: 286
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It's very difficult to use indicators or PCF's to identify price patterns, because they happen on so many different time frames. And each indicator and PCF is based on a unique time that will not work for all situations.
Develop a good watchlist and train your eye to spot these patterns you have come to recognize. That's the way most experienced traders operate. Indicators and PCF's are helpful, but they are only secondary.
sincerely,
jynkin
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Registered User
Joined: 1/31/2005
Posts: 4
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Thanks for that. It is difficult to identify breakout patterns until they are in full swing. Then you have to convince yourself that is what you really seeing. I first saw this "w" pattern some time ago but have been unsuccessfull in trying to map it.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Check out this video
EasyScan Design for Breakouts and Bouncers
- Craig
Here to Help!
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