Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 33

Let's dig in and discuss some swing trading setups. Figure 1.8 shows what I call a knot. It's a useful way of detecting when a pullback will start and at what price. It's ideal for swing traders who want to make money when price breaks out downward from a chart pattern in its initial push lower.

Let's look at Steelcase on the left of the figure. A double top forms at AB and confirms at C when price closes below the horizontal line. How low will the stock drop in its initial descent?

Answer: to the knot at D. I define a knot as a place in a strong trend (E to A in this example) where price moves sideways for at least 3 days. When it's the first knot closest to the double bottom (the first location of support, really, below the pattern's breakout), expect the stock to bottom there and begin a pullback.

In this example, knot D is the first support area below C. Price reaches the area at F and begins to pull back to the price of C.

In my experience with knots, I know to place an order to close out the trade at the top of the knot, not the middle or bottom. Sometimes, price touches the top of the knot and reverses. At other times, the stock drops like we see here at F before reversing.