UNDERSTANDING THE PATTERN 2 IN DOW JONES
Warp predictive software have a manual who describes different patterns to execute approved entries. Today we are going to analyze the Pattern number 2 in Dow Jones. These are the rules for that pattern:
- The trade is activated when the candle closes at the specific time stamp in the chosen timeframe shown by Warp predictive software.
- The closed candle is above the 120 EMA
- The stop loss is below the ATR line plotted by the timestamp, 1 tick under
I open this trade with 4 contracts at 8:42, a little bit late but checking the last rules is valid. My stop loss initially is under the green line, plotted by the 8:42 timestamp. I move the stop loss at point of break-even + 2, because there are already more than 15 ticks of profit.
I like to take partial profits, or you can hold the trade until 9:03. The yellow line is a swing high that you can´t see in the picture, so, I move my first 2 contracts under that line to cover that position. I use a line or an arrow (Yellow) to measure the first “swing” and predict with the same size the second leg, and I wait and cover the first 2 contracts.
After that, when the candle closes at 9:03 I move the stop loss under it.
The next 3 minutes the price stops me out.
Juan Fernando Vega
Spanish – Support