Breaking Coils

[walterw]

Hello Again dear fellow traders ¡¡ I want to share with you some more classic stuff (nothing new) that I am enjoying to trade on this days.... I would like to hear your feedback and possible enhancements to this very simple but winner technique...

As you all know, market tends to build coils during "resting" periods.... after this "resting" is over, coils get break and normally market tends to get trending... so coil breaks show a potencial change of mood in the market... Now trading the break itself its not wise, because there are a lot off false breaks that result only on a range expansion of this coils... so what I am looking at is too see the breaking fact happen and after the fact get in on a continuation of this break... I attach some examples... we can get on details later on the thread... cheers Walter.

[walterw]

Nice Coil Breaks just traded.... off for the day... cheers Walter.

[walterw]

And for today this nice coil break, one of the keys is the speed at the break, it really validates the move , on the upper level we got a very dull break without speed, it just became a range expansion.... on the down break, speed was great.... nice trade indeed... it was worth $110 per contract... cheers Walter.


PD: another detail is that the longer the coil formation, the stronger the break will be.