June 2006
Beginner
352 pages
7h 6m
English
The coffee market is an example of how this approach resulted in a small loss (see Figure 19.6). Coffee had been in a down channel since April 1995 (not shown) and finally broke out in January 1996. It moved higher and then settled into a triangle consolidation pattern. A strong momentum indicator (also not shown), plus an unrealized target of 155 based on a projection from the channel, suggested a continuation of the rally.
Buying at the close on February 23 was a low-risk way to take a position before the inevitable breakout from the triangle. When the market ...
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