As we have seen in the post below, we had a History Triangle on the 3min FTSE at 05:03EST, but the question is whether the history triangle that you see on the chart represents a -1R loss ?
Well, as always, I said to put the Analysis on the setups and then see where the Stop levels fall. In this example you can see that although the FTSE did rally back “up to” the stop level, it did not breach it, therefore only making a “double top”. In other words, the short trade was not stopped out. So no -1R loss.
In fact the TS3 short went on to make a nice +4.4R Profit (ignoring slippage and commission), as the FTSE continued its decline.
So the bottom line is that even when you see a History Triangle, you should always place the Analysis on the chart, only then can you see how the trade actually unfolded.
Thanks, Steve
Well, as always, I said to put the Analysis on the setups and then see where the Stop levels fall. In this example you can see that although the FTSE did rally back “up to” the stop level, it did not breach it, therefore only making a “double top”. In other words, the short trade was not stopped out. So no -1R loss.
In fact the TS3 short went on to make a nice +4.4R Profit (ignoring slippage and commission), as the FTSE continued its decline.
So the bottom line is that even when you see a History Triangle, you should always place the Analysis on the chart, only then can you see how the trade actually unfolded.
Thanks, Steve
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