W Formation

Hi Rynn...

I thought about you when I saw that W formation forming. I asked myself would he or wouldn't he take this trade.

I would not have taken it first time through because we did not have stoch's in the right position...and number 2, we had 2 red candles in a row...it just felt like it was not going to make it. If you did take the risk and you could withstand the emotions, it never pulled back below the #4 point, and it would have paid off. I can't stay in a trade that long for sure. Of course the magic numbers helped propel the ES to close on the bullish bias that we are accustomed to.

Even though W formations are very consistent...we don't have to take the risk, or stay in a trade that long. We can look for something with a little less risk.

I think one could take the risk on the BO of the Triangle after the 3 o'clock reverse failed.

So, to answer your question...You never have to just take the risk, you will miss some of these...if you have MOM, and stoch's in the perfect position (Oversold) it should just take off. On this particular W the stoch's had pulled back and then moved up to give you a clue that it might work...but how do you handle the emotions?

Your thoughts of my email?

Marsh