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Beat the Street: A Trader's Guide to Consistently Scoring in the Markets by Adrian Manz

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Chapter 13. Consolidation Breaks

THE CONSOLIDATION-BREAK pattern solves a problem that plagued me early in my trading career. The issue had to do with spotting intraday set-ups and getting into positions when a stock seemed to be running away from me. Too often, my entry would be the extreme tick of the day; and I would watch in disgust as everything turned around and moved against me. The dilemma with a quick intraday move is always whether to try boarding a moving train, or to wait and see if it is going to stop at the station. Too often, the outcome of jumping in the middle of a trend is whiplash as price reverses and sends the stock immediately toward the stop loss. The solution for me was to wait for the move to consolidate at the extreme ...

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