This morning I was sure I had identified a Triangle pattern that immediately broke to the downside. Fortunately I require more for an entry signal. Sometimes the lack of a trigger is the only thing that saves me from a bad trade – prices quickly reversed back up through the “triangle.”
After what looks like a nice volume breakout, prices reversed again, back into yesterday’s ending consolidation pattern. At 8:30 came the only entry signal of the day. But it’s Friday. And it’s late August. And my longer moving average is flat rather than down. Pass on that.
That’s when I drew the two orange support/resistance lines on the chart, and decided I wouldn’t trade until they were broken. That only happened during the last hour of trading, and if you’ll notice by the volume decrease, everyone had gone home. Guess it’s weekend already.
