Re: MP Rule 1: Don't Fight A Coil Break -- 'Go-With' It
<< If you backtest them, you will find that they fail 60-70% of the time. >>
In many respects, a failed breakout is an even better set-up than a coil break since your 'location' will often be better and you may catch a very rapid rejection which puts you immediately into a profit position. The nice thing here is that you monitor the breakout early-on and either it goes or it doesn't. If playing for a failed breakout, then you can watch for failure as price attempts to breakaway from the equilibrium point and catch some of those times the coil does test one way and 'drive' the opposite way. Very similar to 'open-test-drive' concept from Daltons Market Profile books.
Yes, good entry/exit trading skills are needed here.
Last edited by Dogpile; 08-01-2007 at 09:42 AM.
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