I find price pattern trading very effective. Below is a quick explanation to how any pattern can be designed using important properties of P&F charting method.
βCup and handleβ is a popular pattern.
βCup and handleβ is a popular pattern.
Characteristics of the pattern:
A = Strong fall
B = Base
C = Strong rally
C1 = Small base
D = Breakout
A = Strong fall
B = Base
C = Strong rally
C1 = Small base
D = Breakout
It can be defined on P&F chart:
A = Bearish Anchor column
B = Base (I recommend between 2 β 8 columns)
C = Bullish Anchor column
C1 = Small base
D = Follow-through DTB
C1 is mostly a single column correction but 2 β 4 small size column consolidation is a possibility.
A = Bearish Anchor column
B = Base (I recommend between 2 β 8 columns)
C = Bullish Anchor column
C1 = Small base
D = Follow-through DTB
C1 is mostly a single column correction but 2 β 4 small size column consolidation is a possibility.
I call this pattern Tweezer P&F pattern. I recommend applying Horizontal aggressive count on it. Objective in nature. Easy to scan & backtest. Applicable on all box-values.
An example:
An example:
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