Palladin - the answer to you question is no, that would not
invalidate the pattern if it closes back above its lower band.
Again, this is simply one thing to watch as long as downside
momentum remains in check. With that said, one must respect the
prevailing trend (first and foremost) when trading as surprises
more often resolve in that direction. Simply put, respect the
current downtrend while continuing to re-examine the evidence for
additional clues.
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what if it pokes out
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Posted by Palladin on 24th of Apr 2012 at 08:41 am
what if it pokes out of the BB's (even briefly), does it invalidate the pattern?
Palladin - the answer to
Posted by steve on 24th of Apr 2012 at 08:58 am
Palladin - the answer to you question is no, that would not invalidate the pattern if it closes back above its lower band. Again, this is simply one thing to watch as long as downside momentum remains in check. With that said, one must respect the prevailing trend (first and foremost) when trading as surprises more often resolve in that direction. Simply put, respect the current downtrend while continuing to re-examine the evidence for additional clues.