Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 36

Figure 1.9 shows two more scenarios for swing trading the stock. The left panel shows a double bottom at AB, confirmed when price closes above C. As a swing trader, you don't want to wait to buy into this situation, so you place a buy stop a penny above C. That gets you into the trade right on time.

How far will price rise? Answer: to D. That's the first knot. The knot is the closest region to the breakout where price moves horizontally for at least 3 days. That horizontal movement is obvious because it rests in the circle to the left of D.

D is your short‐term swing target. The stock will rise and hit that region and likely turn back to the breakout in a throwback (which it did in this example, after reaching E).

Figure 1.9 Here are two setups that work well for swing trading throwbacks.

You can set a limit order to sell at the top of the knot, but the bottom of the knot works better (less risky). In this case, it did work better when the rise to E triggered the order and sold the position. You don't make a lot of money trading the throwback (7% or 8%), so you might have to increase the position size to make it worthwhile. Do place a stop‐loss order a penny below the lower of the two bottoms (below A in this case).