T2W Bot
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The best trade could be in the opposite direction when a classic price pattern doesn’t behave according to perfect rules outlined in popular books and web sites. In fact, well-known patterns such as the head and shoulders and bull flag have clearly defined levels that can trigger trade entry signals that are contrary to the direction in which they’re naturally leaning. Alex Elder examined this phenomenon with his Hound of the Baskervilles signal in Trading for a Living when he highlighted a head and shoulders neckline that just wouldn’t break, encouraging observant traders to jump into long positions, rather than following the herd and selling short
We’re taught early in our trading careers to buy breakouts and sell breakdowns, but many contrarians attempt to pay the bills doing the exact opposite. Simply stated, they wait for a rally or selloff to fail and sell the breakout or buy the breakdown. Oppositional tactics don’t end there because tacticians employing these...
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