patrader

tcl=trend channel line.When price breaks out and starts trending i look to draw lines that best "contain" the price action.I first need two swing lows in an uptrend in order to draw a trendline(tl) across them and then extend this tl to the right.Next i locate two swing highs,draw a tl across them and extend this tl to the right.This tl is called a trend channel line(tcl).These two lines "contain" the trending price action.I pay particular attention to wedge shaped trend channels and watch for the third push that reaches or slightly overshoots the tcl.I use these overshoots for exits and/or reversals.HTH

ES Daily chart

240m ES chart

15m rth ES chart

15m 6E chart

I look to exit and/or reverse my trades at the completion of 3 push wedges on the 15m especially if near possible major resistance points.This trade was overshooting the tcl on the third push and was near possible major resistance(dark blue line) at 1.4165 so i exited at 1.4155.Three push wedges into major resistance are early possible signs of trend reversal and a 123 that follows will confirm the reversal if successful.In this particular case the market pushed one more time to the major resistance level and reversed after another overshoot of the tcl forming a slightly larger wedge.Then the 123 set up and the market reversed.Soon after price formed a downward sloping channel that just hit another possible major support level(1.4087) and bounced back up to top of channel.HTH

15m 6E chart

Daily 6E chart

240m 6E chart

15m 6E chart

240m 6E chart

15m 6E chart

240m ES chart

6E 240m chart

6B 240m chart

6B daily chart

6E daily chart

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240m 6E chart

stalking the third push to the trend channel line for possible start of reversal

6E daily chart

240m 6E chart

240m 6E chart