WATCH STRATEGIES
Always look for a breakout from congestion rather than a trend that begins well below the old highs
and ejects without a base. These issues can retrace deeply, not find any base support, and break
even lower. Insist on horizontal resistance rather than a series of ascending highs. The setup
mechanics require strong tension at the breakout level so that price can expand sharply into a new
trend. Ascending highs relieve demand a little bit at a time (similar to a rising wedge) and often run
out of stream before price can break through an upper trendline.
@myleogb I was just reading master swing trader and re`checking some of the "3rd watch" strategies for my ACW trade and came across this passage, I knew it was in there somewhere.
