Watch This Pattern Evolve
We know that certain patterns
tend to be explosive as either price supports or resistance levels are broken.
Two consolidation patterns that typify
explosive moves are
triangles and
Slim Jims. Sometimes though, what starts as one pattern, might evolve into a
larger consolidation. For instance, when a triangle pattern nears its apex,
rather than having done the more typical move outside of the pattern formation,
it often leads into a prolonged state of consolidation. As this ‘lack of motion’
persists, the Slim Jim becomes a leading candidate for containing this price
action. Well, you might know the saying, ‘If you’ve got the time, we got the
beer.’ ‘Oops, wrong one. Seriously though, the axiom, ‘The longer the pattern,
the more explosive the move’ is what’s really appropriate when you have two
instead of one.
10:35:19
Intraday Setup Alert
Netease.com (NTES)
has formed an intraday symmetrical
triangle. Potential triggers below pattern support and session lows for
continuation shorts in this Low RS Issue are set below 43.10. NTES is up .19 at
43.44.
…no immediate satisfaction out of this
high-probability pattern as the stock ultimately moves thru its apex, and into a
Slim Jim consolidation. I don’t know about you, but I definitely have the time
for this one. I might not keep it up on the screen (opting to put in an alert
close to support levels instead) while I focus on other issues, but if this one
‘starts to crack open’–we’ll definitely be ready for action.
…and if the high-probability trade does
ultimately work out with NTES, you’ll be asking for a MGD soon enough…to
celebrate!!!