Bullish Breakdown Patterns
- stevenplace
- January 6th, 2010
Anyone using traditional technical analysis over the past 9 months or so to predict bearish patterns have, for the most part, been sorely wrong. Quint over at tickerville has a name for this: bearish patterns turned bullish breaks– it’s when a pattern which should breakdown only starts a downtrend for a short period of time and then we see momentum quickly reverse to the upside.
I like Q’s name, but I prefer the “get some people short and then rip their faces off” trade.
Needless to say, until we stop seeing these sharp reversals, I will remain very hesitant to play simple breakdowns.
Let’s take a look at some examples. I will do a “before” picture and then an “after” with the result:
JPM
X
OIH
POT
blog comments powered by Disqus
-
Steve Place is a professional derivatives trader, focusing on equity options. He has a degree in Electrical Engineering with specializations in Signals Processing, Stochastics, and... More »
Follow me on: Twitter and StockTwits
-
Not A StockTwits Premium Member?
Premium members gain access to
exclusive content.
-
- StockTwits Desktop
-
Loading...
-
Archives
-
Tag Cloud
WP Cumulus Flash tag cloud by Roy Tanck and Luke Morton requires Flash Player 9 or better.
-