This was not an ideal set up because of the futures gap below, but the triangle setup would have got me into the possible KL break before the break itself – as it was I entered on the break and got -1R instead of BE.
Seeing this PA pattern over and over again has lead me to develop the Headless Bird PA sequence. This entry is the first possible entry for the pattern and the entry is called the Hits-Corrects-Breaks TL entry.
This entry seems very illogical, but it works because the market will so often get towards a level, correct and then reverse down to the level and then
- always use STE at 1:1
- make decisive entries so that 10pts is a reasonable expectation even if there is follow-through on the break
- if price is outside the 3MinBolli Bands, the trade is cancelled