Page 77

P1: PIC/PIC c03

P2: c/d

JWBK244-Miner

QC: e/f

T1: g

August 18, 2008

6:43

Printer: Yet to come

Practical Pattern Recognition for Trends and Corrections

63

As of the last bar on the QQQQ daily chart in Figure 3.12, we don’t know if an ABC correction is complete or if it will take a more complex pattern or even if the QQQQ won’t decline to a new low. What we do know is the conditions for a correction have been made with the three sections and overlap trade into the Wave-A range. That information alone gives us an edge to immediately consider long trade strategies for a probable advance to a new high. The weekly British pound chart in Figure 3.13 shows another ABC correction. The first weekly bar off the potential Wave-C low traded above the Wave-B high for a pattern confirmation signal that an ABC correction was probably complete and the bull trend would eventually continue to a new high without trading below the Wave-C low. The corrective trade strategies are applicable to any actively traded market and any time frame, whether stocks, ETFs, futures, indexes, or Forex. You’ve learned about simple ABC corrections and how to identify the initial signal that the market is in a correction and the initial conditions that signal an ABC

FIGURE 3.13 Bull Trend Continuation Signal

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

Profile for erichunt
Advertisement