- Trend reversal breakout
- Complex pattern breakout
- Climax run up
- Selling off
That's my personal understanding so far.
When the full cycle is not developed as expected, cut loss quickly is a key !!!
Not all trend reversal is 100% for sure !
Not all complex pattern is 100% broken out !
What we need to do is to patiently wait for the full cycle of the profitable trade to be developed, as a observer !!! Only when buying signal shows, then buy ! Only when selling signal shows, then sell !
The most powerful trade is the complex pattern breakout, its advantages:
- Expectable profit
- Expectable loss
- The time cost for the trade is low
The key is to know where the stock is during the full cycle ! Of course, the patience is another important key. We need to wait for the right time to get in as well as the right time to get out !
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