3 pattern push question-  Steve

    Posted by parkridge77 on 23rd of Oct 2012 at 03:51 pm

    3 pattern push question-  Steve & Matt- when is this pattern confirmed?  I am looking at ITW  & it does have 3 pushes-- but sometimes the more touches on a trendline- the more likely it is to break out or break down.   So what confirms a 3 pattern push- is it only a rear view mirror call ?  thnx

    parkridge - 3 push pattern

    Posted by steve on 23rd of Oct 2012 at 03:57 pm

    parkridge - 3 push pattern normally represents a wedge. ITW is not exactly that with the second push failing to make a higher high.

    thnx steve- so when do

    Posted by parkridge77 on 23rd of Oct 2012 at 04:03 pm

    thnx steve- so when do you say 3 pattern push is confirmed or what would be the trigger for that pattern to go short?  thnx

    parkridge - you could short

    Posted by steve on 23rd of Oct 2012 at 04:08 pm

    parkridge - you could short on a reversal pattern after the 3rd push, wait for a break of the 9 EMA, or a break of a rising wedge pattern. Normally, the first move down is a trade to be followed by a lower high which offers a swing trade setup.  This is an example of what I discuss in my tutorials.

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