disciple33- read
my comments from before - yes the gap made it more difficult,
however here's the way to look at it for now and in the future on
these type of patterns going forward.
1. one could have bought the gap up this morning, I know it's
hard to buy the gap psychologically, however patterns like these
wedges do many times resolve with a gap up out of the pattern i.e.
gap over the downtrend line. So one could have bought the gap
up and monitored the gap with a 15 min gap rule for a stop i.e. you
can search the blog for 15 min gap rule to read up on it, but again
I understand that's hard to do for most people
2. One could have started scaling into it yesterday, that's what
I did, I was fine scaling into a partial position with a stop then
adding to it later. I was not here for the 1st hr of the day,
thus I would not able to add on the morning gap, and I didn't have
a full position, I bought only 1/3 position yesterday while TLT was
inside the wedge.
3. Now that symmetry has been met - we can see what happens next
i.e. if symmetry is broken we can buy the next higher low or watch
for a RS of an inverse H&S
and of course the gap occurs because this is an ETF, whereas
futures trade overnight, on futures it wouldn't have gapped out of
the pattern - for ETF's you have to deal with gaps at times that
you wouldn't if one was trading futures. I don't trade bond
futures but just making a point, that's why it gaps
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
TLT 30 min comments
Posted by matt on 15th of May 2015 at 12:15 pm
TLT - Chart Link - I added some things to the TLT 30 min chart
1. you can see the symmetry move at the beginning of the wedge was 3.18, price is getting close to it, now 3.01
2. I drew a smaller fractal wedge inside the larger blue one
Question: Was there an objective TLT entry today, or did one have to buy yesterday?
Posted by disciple33 on 15th of May 2015 at 01:21 pm
I liked the pattern and bought yesterday, but got stopped out on pullback. Gap today didn't really give an objective entry, correct?
disciple33- read my comments from before
Posted by matt on 15th of May 2015 at 01:44 pm
disciple33- read my comments from before - yes the gap made it more difficult, however here's the way to look at it for now and in the future on these type of patterns going forward.
1. one could have bought the gap up this morning, I know it's hard to buy the gap psychologically, however patterns like these wedges do many times resolve with a gap up out of the pattern i.e. gap over the downtrend line. So one could have bought the gap up and monitored the gap with a 15 min gap rule for a stop i.e. you can search the blog for 15 min gap rule to read up on it, but again I understand that's hard to do for most people
2. One could have started scaling into it yesterday, that's what I did, I was fine scaling into a partial position with a stop then adding to it later. I was not here for the 1st hr of the day, thus I would not able to add on the morning gap, and I didn't have a full position, I bought only 1/3 position yesterday while TLT was inside the wedge.
3. Now that symmetry has been met - we can see what happens next i.e. if symmetry is broken we can buy the next higher low or watch for a RS of an inverse H&S
Thanks, good info.
Posted by disciple33 on 15th of May 2015 at 02:10 pm
and of course the gap
Posted by matt on 15th of May 2015 at 01:54 pm
and of course the gap occurs because this is an ETF, whereas futures trade overnight, on futures it wouldn't have gapped out of the pattern - for ETF's you have to deal with gaps at times that you wouldn't if one was trading futures. I don't trade bond futures but just making a point, that's why it gaps