i am not a strict advanced pattern trader. Meaning if the angle/length of the X to A leg or the distance from A to C is a little greater or less than what its supposed to be to validate the pattern, ill still trade it with tight stops.
in this case once we see price meet resistance in the area of C, we can enter short with a stop loss just above A area to protect us in the event it turns around on us and the bulls take control.
The second opportunity came at leg D when price found support around 126.00. Divergence is visible between MACD and price (MACD Histogram is headed up while price had been moving down).
In either case a nice risk/reward ratio was in play and profit targets were reached in both scenarios. Watch for future setup opportunities like this and follow your trading rules using safe position sizing.
Good Trading :)
in this case once we see price meet resistance in the area of C, we can enter short with a stop loss just above A area to protect us in the event it turns around on us and the bulls take control.
The second opportunity came at leg D when price found support around 126.00. Divergence is visible between MACD and price (MACD Histogram is headed up while price had been moving down).
In either case a nice risk/reward ratio was in play and profit targets were reached in both scenarios. Watch for future setup opportunities like this and follow your trading rules using safe position sizing.
Good Trading :)