When a rapid breakout leads into a reversal pattern, the point of breakout provides an area of potential future S/R and a great target for the reversal move.
This blog is interesting as I have not seen you refer frequently to patterns, nor did i think it was part of your course other than the use of micro patterns on the lower timeframe if I am correct?
If I have missed something here do you explain or illustrate these anywhere on the site or other articles that you could direct me to? I am not familiar at all with the diamond reversal.
Hi Di, Patterns do not play a part in my analysis. But when they stand out so much (as per this example) it's hard not to notice them. It's like seeing a really obvious head and shoulders pattern. I don't trade it as a head and shoulders pattern, but it's still there. For the diamond reversal and other patterns, check out the following site: (I don't think the link will be clickable here. If not, copy and paste it into your browser)
December 1, 2011 3:41 AM
Hi Lance
This blog is interesting as I have not seen you refer frequently to patterns, nor did i think it was part of your course other than the use of micro patterns on the lower timeframe if I am correct?
If I have missed something here do you explain or illustrate these anywhere on the site or other articles that you could direct me to?
I am not familiar at all with the diamond reversal.
Thanks
Di
December 1, 2011 3:54 AM
Hi Di,
Patterns do not play a part in my analysis. But when they stand out so much (as per this example) it's hard not to notice them. It's like seeing a really obvious head and shoulders pattern. I don't trade it as a head and shoulders pattern, but it's still there.
For the diamond reversal and other patterns, check out the following site: (I don't think the link will be clickable here. If not, copy and paste it into your browser)
http://thepatternsite.com/chartpatterns.html
Cheers,
Lance