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The Shawshank Redemption


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The Shawshank Redemption

 
 
Silver Dragon's Avatar
 Silver Dragon 
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babypowder View Post
ES- 1 min chart, TL break play long. 1 Min - babypowder's library.

Hope you dont mind, borrowed your chart. See attached; One thing I have always noticed about short term trendline breaks is how it comes back to test the trendline. I have always tried to catch a lower price however this can be a double edged sword; if the break is strong and has buyers behind it then you miss the move entirely because it did not pull back.

How do you play the TL breaks?


SD

nosce te ipsum

You make your own opportunities in life.
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 babypowder 
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Silver Dragon View Post
Hope you dont mind, borrowed your chart. See attached; One thing I have always noticed about short term trendline breaks is how it comes back to test the trendline. I have always tried to catch a lower price however this can be a double edged sword; if the break is strong and has buyers behind it then you miss the move entirely because it did not pull back.

How do you play the TL breaks?


SD

Hey SD,
Yes, I have noticed that price regression to the TL after a TLB occurs frequently. But here's a PA explanation why this sometime happens as I see it. In your example you can see price stalls (91.50) for 5 bars containing 2 doji's before the TLB occurs. I would mark this area/level with a horizontal line as a significant level for the time being. Then you can see the TL coincides with this level 91.50 making it look like price bounced of the TL. Then look for your entries via OB/IB/2-3 Bar Reversals.

Update: https://screencast.com/t/uqT5jKE9cVck

Hope this helps,
BP

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 babypowder 
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Update:
6E- 1440 min chart, 6E - babypowder's library. No clear TLB you can see a bullish pin bar almost doji. But I'm still waiting for 12 for complete candle formation. Most likely there's no signal. Stay tuned.

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 babypowder 
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No TLB yet, 6E DAILY - babypowder's library.

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 babypowder 
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6E- 1440 chart marked up, 6E - babypowder's library.
If TLB occurs this is the area i would enter on a pullback, 6E - babypowder's library.

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 babypowder 
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ES- 610 tick chart, ES - babypowder's library.
6E- 1440 min chart update, 6E - babypowder's library. No TLB yet. But interesting fact in regards to Suri's webinar concerning wedge patterns being a continuous pattern!

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 babypowder 
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ES- 610 tick chart, ES - babypowder's library.

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 babypowder 
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CL-5 min chart, CL - babypowder's library.

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 babypowder 
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Our live setup is just dying to explode! But which way? You can see pin bars rejected as soon as price tries to crossover the Major TL, 6E - babypowder's library. Stay tuned.

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 babypowder 
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6E-1440 min chart- TLB signal, 6E - babypowder's library. I will record 2 entries. First at TLB 4200-4170 area and second would be a pullback entry highlighted at the 3 shaded area if it comes back. Risk at this time frame is huge but this is just for learning and discussing a live setup unless you trade forex in which case you would have leverage on your side. Or just use this larger TF to determine a intraday bias on smaller TF's.

Pullback entry, 6E - babypowder's library. I would expect the circle area to be a good spot for price to pullback and look for a entry. A second bearish TL is drawn to show confluence/line up with the horizontal lines which represent your left (previous PA Supp/Res). Also, you will see a triangle pattern revealed. Correlating both PA and pattern.
See below:
Pattern, 6E - babypowder's library.
PA, 6E - babypowder's library.

Stops are located here, 6E - babypowder's library.

Profit Targets
Short tern channel, 6E - babypowder's library..
To your LEFT, 6E - babypowder's library.
FIB, 6E - babypowder's library.
OR Confluence of All, 6E - babypowder's library.

Stay tuned,
BP

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Last Updated on July 28, 2011


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