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Posts Tagged ‘123 lower low pattern’

Today was what I call the bowling alley trade.

The premarket dump turned out to be the perfect setup for the 123 lower low as the price rebounded. After a long lunch slim jim, the globex hi was taken out on the other side in the afternoon. Then the boys played the same game and caught the late buyers buying the pullback.

You can only anticipate moves like these by being in front of the computer for a number of years and seeing all the games that they play. Experience is one of the best teachers I know.

Marginal lows and high’s are a bit tricky, but the enlightened ones know how to play this game exceptionally well. Being aware of possible reversal zones and times is the key to catching these trades that change direction.

Kevin haggerty’s signal bar strategy is one of the best techniques out there day in and day out to capture these powerful ricochet moves.

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The overnight 123 Lower low pattern finally asserted itself during the afternoon rush hour traffic. The bulls had been buying pullbacks all day, but needed to take out the 61 to break the bears latest hopes and stops.

There are many reliable patterns out there, and 123 Lower low is a tricky one. In hindsight it is always obvious, but as traders, we don’t have that luxury.

Oversold needs a bounce, so the logical question is, “how high?”

Step by step, one day at a time we find support and resistance.

Don’t overthink it, just play for the meat of the move and let the others do all the worrying.

The ole’ Grizzly on the cover of Barron’s this weekend was evidently enough to catapult us higher for a day or two. Funny how it works that way.

News in the afternoon usually doesn’t have this big an impact, but this market was ready for a bounce.

When the tide is rising, ride the wave, or you will be swept along in the current of other traders scrambling to cover their shorts.

One time not honoring your stop is one time too many.

Even if you get away with it, you build bad habits that do not lead to successful trading.

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