back start next[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [ 25 ] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123] 25 Figure 3 Sure enough, an event comes four days after my order was filled. Time will tell if this is the beginning of a congestion or otherwise. Just to be sure, I move my stop to a profit point that is just below a .618 retracement of the market swing that carried from point "A" on the chart to the latest market high. I also compute a .382 retracement of this swing in case the retracement only reaches to that point. Often a market wil! retrace somewhere between the .618 and the .382 points. If it does, that is fine with me because it shows a market that is doing what I might have expected it to do.For point "A," I chose the top of the iast gap. This is because It represents a point that was approximately the middle of the prior congestion, and prices have supported there in the past.8525 8413.3B2 ... .618stop7602 74217309 7128Figure 4 As expected, prices moved to just past a .382 retracement and then headed back up. i now have / on the chart in front of me based on the original teg up /, a leg down \, and another leg up /, so 1 compute and draw the envelope. I will not use the envelope yet because the trading range is not yet 21 + days old, but I want to know where it is as a point of reference in case I need it. If prices breakout of the envelope then I wilt discard it in favor of a new one, or discard it entirely.Z - ijyy breakout,- sell breakoutFigure 5 I also have a new opportunity to place both a buy and a sell order, A buy order would be based upon a breakout of the 1-2-3 low, and a sell order would be based upon a breakout of the l-II-III high shown on the chart.For the present, I will label this formation as having a 1-2-3 low. Its okay to mark the #1 point at the top of the gap. The #1 point is there merely for reference. Later, when I describe how to trade a Ross hook, I will show similar formations with the focus on the #2 point, which is really a Ross hook.[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [ 25 ] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] [76] [77] [78] [79] [80] [81] [82] [83] [84] [85] [86] [87] [88] [89] [90] [91] [92] [93] [94] [95] [96] [97] [98] [99] [100] [101] [102] [103] [104] [105] [106] [107] [108] [109] [110] [111] [112] [113] [114] [115] [116] [117] [118] [119] [120] [121] [122] [123]