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This chart of SBM shows exactly what we are looking to trade in this thread. If you know what to look for then you can scan many charts quite quickly.

If this is a chart pattern that you want to trade, print this chart and keep it on your table, close by. If you trade other patterns then find perfect charts and print them also. This is how you create your chart pattern play book. Pav often mentions his play-book of setups.

Trend Continuation setup after BO-HR.
Price broke through a horizontal resistance level (BO-HR) that had lasted for several months. (Note: This is one of my favourite buy signals but we are not trading these in this thread). The price break-out restarts the daily trend up. After a short sharp price rise, profit taking pauses the upward price movement. The subsequent price pattern that forms during this supply/demand exchange is a narrow ledge instead of a deeper pullback. These shallow ledges are good high probability trend continuation setups.

Pending buy stops must be placed in the market to catch these trades.
These ledges are good places to add to your initial position if you started cautiously at the BO-HR.

[ATTACH]62363[/ATTACH]

Comment: If this is such a good example, why didn't I trade it in this thread. Knew you'd wonder about that. The quick answer is I'm bearish gold and having one open trade in gold (SAR) I didn't wish to start another in this current bearish market.

<blockquote data-quote="peter2" data-source="post: 867386" data-attributes="member: 13908">This chart of SBM shows exactly what we are looking to trade in this thread. If you know what to look for then you can scan many charts quite quickly. If this is a chart pattern that you want to trade, print this chart and keep it on your table, close by. If you trade other patterns then find perfect charts and print them also. This is how you create your chart pattern play book. Pav often mentions his play-book of setups. Trend Continuation setup after BO-HR. Price broke through a horizontal resistance level (BO-HR) that had lasted for several months. (Note: This is one of my favourite buy signals but we are not trading these in this thread). The price break-out restarts the daily trend up. After a short sharp price rise, profit taking pauses the upward price movement. The subsequent price pattern that forms during this supply/demand exchange is a narrow ledge instead of a deeper pullback. These shallow ledges are good high probability trend continuation setups. Pending buy stops must be placed in the market to catch these trades.&nbsp; These ledges are good places to add to your initial position if you started cautiously at the BO-HR. [ATTACH]62363[/ATTACH]Comment: If this is such a good example, why didn&#039;t I trade it in this thread. Knew you&#039;d wonder about that. The quick answer is I&#039;m bearish gold and having one open trade in gold (SAR) I didn&#039;t wish to start another in this current bearish market.</blockquote>

[QUOTE="peter2, post: 867386, member: 13908"] This chart of [B]SBM[/B] shows exactly what we are looking to trade in this thread. If you know what to look for then you can scan many charts quite quickly. If this is a chart pattern that you want to trade, print this chart and keep it on your table, close by. If you trade other patterns then find perfect charts and print them also. This is how you create your chart pattern play book. Pav often mentions his play-book of setups. [COLOR="#0000CD"][B]Trend Continuation setup after BO-HR[/B][/COLOR]. Price broke through a horizontal resistance level (BO-HR) that had lasted for several months. (Note: This is one of my favourite buy signals but we are not trading these in this thread). The price break-out restarts the daily trend up. After a short sharp price rise, profit taking pauses the upward price movement. The subsequent price pattern that forms during this supply/demand exchange is a narrow ledge instead of a deeper pullback. These shallow ledges are good high probability trend continuation setups. Pending buy stops must be placed in the market to catch these trades. These ledges are good places to add to your initial position if you started cautiously at the BO-HR. [ATTACH]62363.vB[/ATTACH] [U]Comment[/U]: If this is such a good example, why didn't I trade it in this thread. Knew you'd wonder about that. The quick answer is I'm bearish gold and having one open trade in gold (SAR) I didn't wish to start another in this current bearish market. [/QUOTE]

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