Trading Vs. Pattern Recognition
Remember to be flexible enough to spot reversals when assessing pattern
setups. As I have written before, they do not exist in a vacuum and need to be
evaluated on a number of fronts.
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12:40:57
Index Alert
The Nasdaq 100 index ($NDX.X)
appears to have put in a Haggerty 1-2-3 top, however is not triggering to
the downside, suggesting a possible failure. $NDX.X is now up 29.19 at 1413.25.
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The trigger to the downside out of the pattern would be a
violation of the low at the red line, which does happen, but quickly reverses.
Then something interesting occurs.
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12:52:19
Index Alert
The Nasdaq 100 index ($NDX.X)
is beginning to take out an angular triple top on the five-minute chart. The
index is now up 32.24 to 1416.30.
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The index rallies a quick 15 points over the next 30 minutes, a
move that can be captured using the futures, eminis, QQQ’s or several of the
underlying individual stocks in the index. Choppy markets require flexibility.
Learning to read market action is what will separate a true trader from everyone
who read a couple of books during the runaway bull market.
Until tomorrow,
Duke