Friday, July 22, 2011
TTRs break the trend
Any horizontal movement extended long enough will break a trend, including one bar trends and gaps. Its best to exit any positions near the top of the TTR and look for new entries after the next trend break.
A minor horizontal movement such b19-24 is simply a two legged pullback (b20 and b24 were two pullbacks) and should not be considered an extended TTR. On the other hand, when two up and down attempts failed (b46,47,49,50) There is good chance this is a horizontal flag and TTR.
Stop runs in a TTR (b54,55 and b56) should are not reversals and should not be taken. A breakout out of the TTR, especially a 2 or 3 legged BO can be faded (b69-75)