Thanks Len Hun for your indepth analysis and review. I will pull...

Thanks Len Hun for your indepth analysis and review. I will pull out old trades of this set up and incorporate your theorem.

The reason for the question is that I frequently will trade the set up but use a trailing profit stop and not a measured move methodology.

The 'ABC' type consolidation from the swing high forms what I know as a swing trap. Basically this is a swing low ie 8/5 brings in ST players, it then is breached, this traps the unwary on the wrong side of the ledger and stops are set off. The new low then forms ie 21/5 and pivots producing a profitable run. This is more a swing chart price action set up for me.

I have not used the first measure move on this pattern and will review my trap plays to see what would have been more $$ as this fits more of a pattern price action approach.

Interesting this also appears to be the first impulse move from a base I wonder how well it performs when it is from a secondary or later consolidation phase.

The trap I enter on the formation is from the second pivot and trail a stop. With respects to indicators I do incorporate them somewhat with my trailing stop. For instance (although I did not trade this play) I did note on friday a divergence on the powerful %R this usually will give you up to 2-3 days before the price swings and then retraces. this would encourage a tightening of my stop.

I agree that careful assessment of retracement and candle or pivot formation could provide a further trade in the near term.

Again thanks for freely sharing your knowledge and methodology.

Regards RM