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"M" Breakout pattern


Bruce posted something similar the other day and I want to follow up with a chart so you can see how I use it.

I learned this pattern many moons ago from Ken Roberts. Yes, I know good old Ken LOL. Hey, this pattern has paid for that course many, many, many times over! One of my favorites in my tool box.

Below is a pic of a 5 minutes chart with a trade that took place recently, last Thursday. This pattern is found in intraday charts, daily charts, weekly charts, monthly charts, yearly charts, decade charts and..........others......

Basically the chart below is self explanatory for bearish signals, the inverse will be for bullish signals. Notice that I'm using the Macd in steroids but you can use your favorite wiggles too.

Hope this helps, constructive comments are welcome and encourage! Any heavy-duty questions: Please ask webmaster, thank you!


Click image for original size
breakoutpattern
Interesting how many different methods work for different people. When I look at that chart, I see 2 trades for me via pullback. Short around 1144 and long around 1134.

Good luck to all.
agree big Mike...I like the pattern but I think it would be lower risk to get in BEFORE the # 2 point gets broken if possible....but we always can't get s signal for those.

Nice set up and context though...thanks Hunter
I forgot to place a label on top of the chart that reads "Example of how I use the M pattern"

Actually any pro, will see and will gun for the 3 potential trades that unfolded. The first one is before day session opening with more to the outside after the opening, and up to the reversal bar at 1153.50 , the second one is a sell "Fading the opening gap" Starts below the highest bar with stop loss just above 1153.50, close the gap and let the runners go till stop out. The third one is a buy and the trigger in this 5 minutes chart, is just above the third bar at 1133.75 till stopped out. So yes, I agree. Many ways to play the market.



Originally posted by Big Mike

Interesting how many different methods work for different people. When I look at that chart, I see 2 trades for me via pullback. Short around 1144 and long around 1134.

Good luck to all.
like the retrace to 1150?

Originally posted by BruceM

agree big Mike...I like the pattern but I think it would be lower risk to get in BEFORE the # 2 point gets broken if possible....but we always can't get s signal for those.

Nice set up and context though...thanks Hunter