That is also a trader vic 2b set up. Peak 3 pushed above peak 1, but failed to go higher. An entry would be to short when there is a candle close below the breakout bar. A much more conservative entry would be to wait until the break of low of the candle which closed below the breakout bar. Either way would mean a risk of 15-20pips.
You have to be careful with this set up, that one worked because Aussie was in overall downtrend, so it was a retracement top. If you try to pick tops or bottoms counter trend, the high or low has to be new for around the last 40 or so bars. Target would be the last swing high or low.
That is also a trader vic 2b set up. Peak 3 pushed above peak 1, but failed to go higher. An entry would be to short when there is a candle close below the breakout bar. A much more conservative entry would be to wait until the break of low of the candle which closed below the breakout bar. Either way would mean a risk of 15-20pips.
ReplyDeleteThanks Ken, that is helpful
ReplyDeleteYou have to be careful with this set up, that one worked because Aussie was in overall downtrend, so it was a retracement top. If you try to pick tops or bottoms counter trend, the high or low has to be new for around the last 40 or so bars. Target would be the last swing high or low.
ReplyDelete