When a trend is very steep such as the move from b5 to b23, the entire move acts like one leg and often act like a spike and channel with the channel acting like a second leg to the spike. Typically, most of the momentum is exhausted at the spike, causing the channel to be comparatively shallow in slope.
Since the channel is a W, you should expect 3 higher pushes and then a test of the channel start (b35 low) which could occur in the next day.
Since the channel is a weak trend, if its wide enough to trade, you can still take A2 and other deep 2 legged pullbacks until the third push is complete.
Cadaver, May I ask you are you or have you seen or know of anyone making a living trading on a 5 minute chart? I have been trying to do this for the last 10 years and have been using Al Brooks PA over the last few years. Read all his books and subscribed to his room and continue to refine and attempt to get better but at the end of day I sometimes wonder if it can be done. Any input or comments would be appreciated. Cheers Brad
ReplyDeleteProfessional traders exist trading on all kinds of platforms including 1m, 5m, 30m, 1hr etc. in addition to tick charts, volume charts, just trading the DOM, etc. It all depends on what suits you best. The secret to success lies not in being right all the time, but in observing proper risk management and strict entry/exit rules. You can be profitable on 50% success rate as long as your winnes are larger than your losers.
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