Notes made the corrective high on an outside reversal day on Jan. 24, two trading days after the ideal Time Band for a corrective high. The high was made a few ticks short of the 50% retracement. It was not a direct time/price hit for a corrective high but Jan. 16 analysis of the technical position warned a corrective high was due soon. The 13 Daily DTosc made the Bear Reversal on Jan. 24 to signal the correction should be complete.
If you get paralysis of analysis, you will not take a trade until all of the conditions are ideal instead of close-enough like this Note setup. The key lessons of this setup:
1. A corrective high was near. Traders long should be looking to trail stops close to the market and prepare for a short trade.
2. The pattern was clearly corrective.
3. The final technical condition for a probable corrective high was a 13 Daily DTosc Bear Reversal.
A high probability-low risk trade setup was made.
I apologize the chart screen capture did not show up in the blog piece. I followed all the instructions for the picture insertion but all that showed was the picture title. I’ll keep trying to figure out how to include the charts.
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