Catching IMPULSIVE Moves
Updated
IMPULSIVE MOVES: Catching those FAST MOVING Price moves can be challenging, but there is an easy way to see them coming.
FIRST: Check the Monthly, Weekly and Daily charts for TRENDS and draw bracketing lines, parallel if possible, on both sides of the major price action which leads into the current Price.
Always paying most attention to WHERE the current Price is WITHIN the larger trend, find all the prior trends on the smaller time-scales that are WITHIN the larger longer time-frame trends, and notice that BREAK-Outs of price usually lead into these "consolidation zones" and also lead OUT of them too. So what I want to do is bracket each consolidation zone, or Price channel, and if possible with a HORIZONTAL bracket, because it is easier to place STOP LIMIT ORDERS which bracket the small trend to catch the BREAK OUT.
Spend several minutes seeing if you can find ALL of the IMPULSE moves on the following charts, and try to bracket the consolidation zone that is BETWEEN the IMPULSE MOVES. Odds are they are each nice Price channels.
FIRST: Check the Monthly, Weekly and Daily charts for TRENDS and draw bracketing lines, parallel if possible, on both sides of the major price action which leads into the current Price.
Always paying most attention to WHERE the current Price is WITHIN the larger trend, find all the prior trends on the smaller time-scales that are WITHIN the larger longer time-frame trends, and notice that BREAK-Outs of price usually lead into these "consolidation zones" and also lead OUT of them too. So what I want to do is bracket each consolidation zone, or Price channel, and if possible with a HORIZONTAL bracket, because it is easier to place STOP LIMIT ORDERS which bracket the small trend to catch the BREAK OUT.
Spend several minutes seeing if you can find ALL of the IMPULSE moves on the following charts, and try to bracket the consolidation zone that is BETWEEN the IMPULSE MOVES. Odds are they are each nice Price channels.
Note
Here is a closer look at that same chart:Last night/this morning I had 25 Orders with price brackets around consolidation moves (Flags), 6 of them TRIGGERED my stop-limit orders, I lost $6 on one trade that stopped out, and made $200 on the profitable ones a I closed.
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And an even CLOSER Look at today's (or Monday's) opportunity to catch another SHORT trade towards the Bottom of the Longer term channel.Good Luck and Happy Trades!
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You can (and should) look at even a Lower Time-Frame (like the 15 minute) for a great ENTER and EXIT Pattern. Something which I really like to use as an entry is an ENGULFING REVERSAL CANDLE in the direction of my preferred trade (SHORT in this case) following a Doji Candle.Note
Have a close look at this other chart, particularly at the TOPPING Pattern of candles. Note the RED Down Arrows above each top showing a reversing candle that (1- 3 candles can compose a reversal if they all engulf the last up-candle) that STARTS the IMPULSE MOVE in the opposite direction.Note also the VERY LONG Reversing candle preceding the huge Up-Move towards the end of this chart!
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Flags and Flagpoles are EVERYWHERE! And... they're easy to trade too. How hard is it to spot the main trend channel, then simply draw a line along the shorter term trend WITHIN the longer term trend? In a longer term down trend, I take the trades from the top of the channel towards the bottom, and it's easy to spot that break down. REMEMBER that you can use the ALARMS on your chart software too! Another trick is to click on the SORT function of your watch list to see which Pairs are moving most, then check out the one moving most for trend changes within the longer term trend.Note
WANT MORE DETAIL? Here is HOW I set my Targets... this time more than 200!Note
EURCAD (TOP CHART) UPDATE: I AM STILL BULLISH. Note the impulse move into the current price action, and the potential impulsive move OUT also.
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