This week – 11 to 15 Feb – was not great for profits but it was fantastic for finding new setups and developing PA reading skills. The observations here lead me to develop the Bird in Flight PA sequence and more specifically, the Hits-Corrects-Breaks TL entry.
Te first compression is the bird’s left wing, the dip down to the level is its tail and the compression after the level is hit is the right hand wing. A break up the compression on te right hand wing, means that the move off the KL has some MOM and it’s time to get on board. A break of the right hand wing suggests that the bounce has no legs and is just a corrective bounce which presents an opportinity to trade in the direction of the move into the level.