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Special Report: When Trend Reversal Patterns Fail
June 24th, 2012
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| Hello:
Many newsletter writers tend to send out reports on their good days, trumpeting how well their techniques work. But then they remain quiet on the bad days when those techniques result in losses. As experienced traders, we KNOW that the best information can be acquired when things don't work as expected. That is the time we need to double-down and do intensive analysis so that we gain more insight into how and when things should work properly. Understanding the failures enable us to be more confident in pulling the trigger when things are working. In fact, sometimes seeing how well our tools and rules protect us from disaster can help us gain confidence in our trading approach.
In this special report, we are going to examine last Thursday's large market sell-off. In particular, we are going to look at the market from the perspective of a BULLISH trader. We are going to do this to highlight those points in the chart where a BULLISH trend-reversal trader might have attempted long trades. How much damage would such a trader have incurred over the course of one of the most bearish trading days in the past month?
The time period under examination will be the NYSE trading hours (8:30 AM CST - 3:00 PM CST). We will look at the intraday charts to find points where the trend temporarily turned from DOWN to UP.
Please note that in this letter, we will incorporate some rather large charts. In order to make sure that everyone can comfortably read this message, we are keeping the images small but you can click on the image to be taken to a larger, more readable version in your browser.
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