Fitting to More than One Pullback
Most accelerated trends display more than one significant pullback, some showing three, four, or five. So, to which pullback should one fit the TB-F curve? More specifically, what procedure should one use when encountering more than one pullback as the move progresses? Let's start with several examples to motivate the final, full answer to this question.
Let's place ourselves early in the trend shown in Figure 5.3, a few weeks after the first pullback appears, and let's pretend that we have no idea what's coming later. Figure 5.6 shows this, where the hard right edge of the chart is at June 26, 2009. A month earlier a distinct pullback occurred, which is far above S1, so we launch S2 from there, and we do a TB-F ...
Get MIDAS Technical Analysis: A VWAP Approach to Trading and Investing in Today's Markets now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
