Good day folks,
One of my favourite pattern is showing up on the one and four hour chart. I’m a very short-term trader who often scalp a couple bucks intra-day. However, I will be opening a position in this longer timeframe trade, because I just cannot pass on it.
This is a bearish pattern. I don’t know if there is a name for it, if there is one please educate me. This is basically a double-bottom with a double-top between them. What I observed is that it is often followed by a strong reversal following the double-bottom, then make a double-top again, and then fall again. I do not know how far the reversal can go; sometimes it is stronger, sometimes less. My target is about 265, which would bring us to January high and make at the same time a double-top (it would make sense). It is also not sure that the selloff would be has bad as I show it on the chart, here again it is pure speculation and charting is not an exact science.
Following is my trading plan:
1. Open CALL DIA 2018APR20 250.00 (if I’m right, we have minimum a 10 bagger here);
2. Close Call position;
3. Open PUT DIA 2018JUN15 250.00;
4. Close Put position if price don’t break 255. If it breaks it, let it go! (Final target: 200)
As you can see, it is a very speculative trade, but I have been successful trading this pattern in the 5 minutes chart, so I’m giving it a try in a longer timeframe.
Thank you, all comments are welcome,
One of my favourite pattern is showing up on the one and four hour chart. I’m a very short-term trader who often scalp a couple bucks intra-day. However, I will be opening a position in this longer timeframe trade, because I just cannot pass on it.
This is a bearish pattern. I don’t know if there is a name for it, if there is one please educate me. This is basically a double-bottom with a double-top between them. What I observed is that it is often followed by a strong reversal following the double-bottom, then make a double-top again, and then fall again. I do not know how far the reversal can go; sometimes it is stronger, sometimes less. My target is about 265, which would bring us to January high and make at the same time a double-top (it would make sense). It is also not sure that the selloff would be has bad as I show it on the chart, here again it is pure speculation and charting is not an exact science.
Following is my trading plan:
1. Open CALL DIA 2018APR20 250.00 (if I’m right, we have minimum a 10 bagger here);
2. Close Call position;
3. Open PUT DIA 2018JUN15 250.00;
4. Close Put position if price don’t break 255. If it breaks it, let it go! (Final target: 200)
As you can see, it is a very speculative trade, but I have been successful trading this pattern in the 5 minutes chart, so I’m giving it a try in a longer timeframe.
Thank you, all comments are welcome,
Note
Good day,
I added a second scenario (in pink) and also revised my targets lower (I must admit that it was a bit optimistic), but the idea remains the same; some upside following by a serious selloff. As of now, the worst I can see for DJI is 22900, so I will open a small long position and average down if we reach that. I'm still holding on my puts until we can see some signs of a rally beginning.
Thanks,
Note
My trading plan for this week assumming that we are going up until we reach the top trendline of the triangle (in green).
Basically, i have a long position that i will hold and I will be shorting at all the tops marked by a water drop.
Note
We are getting close from the top trend line of this descending triangle (green). You remember the last time? It dropped. I will be buying a couple puts if a candle gets close to it. But overall everything looks good: I think that we are going to break through this triangle, however I expect some resistance, and a trap (bear or bull, to early to tell, but I would bet on a bear trap).
Cheers,
Note
We are approaching the trap at 242. This will be the moment of truth: Are we going long or are we going short? I will be long if 242 holds. If not then I will be short. Expect a confusing setup. I think that it is better to be patient in this trap.
Note
Looks like the DJI is stabilizing; a good time to iniate a long position. I will adding if it breaks through 242.Note
Inversed H&S in formation; I will be adding calls on the right shoulder at around 241Note
definitively not goodNote
Pink scenario it is. Sold my puts, waiting for a retracement for selling my remaining calls and open puts again.Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.