Platform: various, but currently using X-Trader with plugin Tradingedge
Favorite Futures: currently Euribor, Bund, Bobl and Shatz
Posts: 100 since Jul 2012
Thanks: 100 given,
Its fairly easy to see patterns, but I think in order to make this a more successful strategy some things might need to be tweaked. Sometimes it happens that it goes either slightly up or down, and then heads the other way. So lets say I had entered 2 pip under, it could then be triggered leaving me with a loss as it would pull up and hit my sl.
I think as you said this is mainly a reversal entry, but could be used either way.
I wont be here the whole of NY session but will be around for a bit.
Tweaks should be made by the trader / that's the only way to trade either a pattern set up or level set up. And make yourself comfortable with it. I can always tell you what I do, but what your do is actually more important. And I say that with alot of respect. I will almost certainly guarantee how I see the market and how you see the market is very different. Even though we are talking about the same setup.
When in doubt, lower your position size and put the stop on the other side of the pattern. That's a reasonable solution to an age old pattern.
With any "break from consolidation" pattern certainly the age old problem is when to enter. Here's a couple of items that might help should you trade this or any other pattern.
Do you want to trade the immediate break or wait until price pulls back into the zone then enter at some designated point? I trade the inital break accepting most times price will pull back into the zone, i try to pull 10 points out of the market before that happens.
You are identifying the pattern well - we'll keep working on the rest. I have alot more to share with everyone.