xjo - weekend charting and chat -04 april 2014, page-23

Thanks Red

So this is how I intend to trade Monday.

I believe we have just peaked out the bottom of a bearish wedge on declining volume with CCI turning down so will be looking to short the open.

In fact I have already taken a small short posi on Friday night but will up the size if it does fall out the bottom.

So what could happen-

Its a false break and it reverses back to the top of the upchannel possible even breaking out higher, so will be stopped out but not sure where to put that just yet.

If it does fall out the bottom my first target will be the line of support the wedge initially formed from, the second target will be the bottom of the uptrend channel we have been in since July 2012 third target will be the line of support from the december and Feb lows. Will worry about the rest if all that comes to pass

I'll probably put a 30 or 40 point trailing stop in just in case something hawry happens.

My only question is would you guys usually take your self out of a trade at each target point and re-enter as each line of support is breached or just hold and hope the inevitable bounce does not stop you out?