Looking at patterns in context

While it may be tempting to trade smaller charts “because then I can use smaller stops” (an illusion in itself, but that’s for another post), ignoring the higher timeframe context will too often lead to losing trades. See 6E today. After our early morning short, we were looking at what looked like an enticing bullflag on our Precision (smallest) Chart. In fact, it was nothing but part of an emerging bearflag on the 240m (our Trading Chart in this case), which again is part of a move on the daily.

Trying to trade that ‘bullflag’ on the small chart “because I can use smaller stops” is not advised: it will fail more often than not. It is a better approach to expect that pattern’s failure and take that as the clue to enter short on the 240m, a more sensible (i.e. less noisy) timeframe.

We often use the concept of ‘pattern failure’ in our Market Intelligence service when planning trades, and according to my in-house stats, it is one important part of the success of our methodology.

By the way, we’re still running the Premium VIP offer for a few more days, so this is a great time to sign up for a 15-day free trial. Join us and see how we do what we do. And while you’re at it, why not test-drive Remek! Momentum Pro v2.17, our preferred tool on 240m charts. Mindful trading!

Remek! Premium , current month

Remek! Premium, current month

PS: Want to know more about patterns, and how to view them, how to trade them successfully? Read our Premium Documentation, now available not only to Premium subscribers.

Our momentum trades

We started Remek! Premium about two weeks ago. Here’s the equity curve so far. Now we know regression to the mean also applies to data like this, so some rain will come our way for sure. Also, we didn’t really expect a launch as good as this. But what the heck, at least we won’t be in a bad place when that rain comes. (Rain = flat, range-bound market, with losers, and nothing to do.)

We should add there’s not many currency trades in this, currencies being very non-galant lately with regards to any meaningful trending action. When that changes, we’ll do more 6E/B/S/A trades as well.

One more thing on the Premium service: Premium charts are generic on purpose, a pullback being a pullback however you look at it. Therefore the setups we share with subscribers can be traded with both The Remek! System and Remek! Momentum. To make it short, it’s a value-added service every Remek! System/Remek! Momentum owner can profit from. Check out Remek! Premium now, we have a 15-day free trial. Mindful trading!

Premium equity curve: Remek! works

And the trades behind the graph.