Thursday, October 24, 2013

A blow of top to be remembered

I trade two slighly different but similar patterns, blow off top patterns and megaphone patterns. While the trades based on megaphone patterns have performed well the same can not be said for all trades based on BOT patterns. I've lost moeny on two of them. One of them, TYL, has just kept on going and going.

But unless the whole theory of BOTs is wrong, and I've studied a lot of them, this is now a sure short sell. Hopefully we can get an overshoot today to get a good entry.

Another thougth is if this chart is telling something about the whole market. There are no longer any megaphone patterns on inverse ETFs, there are some candidates on long ETFs. So all visible patterns are for shorting the market.

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