WAF west african resources limited

WAF - About to Breakout, page-176

  1. YLJ
    819 Posts.
    lightbulb Created with Sketch. 870
    Hi@Tanotfa

    Always nice to see your posts. Good catch on the Outside Day bar, it would have turned out to be a great entry.
    Entering trades while patterns are still information and yet to be validated can be very profitable when they work out.
    The downside is the challenge with clear stop-loss levels and a higher failure rate when the patterns do not come to
    fruition. Extra tough in the case of H&S (especially of the complex variety) as although the ideal H&S will form the
    right shoulder at the same approximate level of the left one, this is very often not the case in actuality...
    That is why I mostly refrain from them as a primarily breakout-focused trader unless I have a smaller pattern within
    the larger one that is forming.

    A retest of the Neckline is always a possibility and a chance for second/late entry as you say, but I am much more hesitant
    to trade a retest when the trade has already made it 50% to the target before the "pull-back". The best trades often do not
    pull back at all. I find often enough that is true even after a sustained rise till the breakout point which can be counter-intuitive
    and make the entry psychologically challenging.

    My knowledge of Pitchfork use is rusty at best, has been a long time since I played around with them in the earlier years
    and Classical Charting has taken the forefront for me. Also struggled a bit to see exactly what Fib levels and number you
    are using but the picture is clear enough and always good to see other styles of analysis coinciding...

    A simple Fib trend extension (which I occasionally use but mostly when pattern targets have been surpassed) confirms
    the 1.59 level to me, but that is no surprise as in the case of a good H&S Continuation after a run-up that will almost
    always be the case. Possible weekly Channel also coincides with that rough area.

    https://hotcopper.com.au/data/attachments/3686/3686760-b4350cb151e95cfcb355691def558dff.jpg

    Regarding, the other stock you mentioned, I am thankfully in for quite a while now on what has turned out to be a longer duration
    position trade/investment and liking the fundamentals too. Happy to see how that unfolds...

    All the best,
    YLJ

    Last edited by YLJ: 14/10/21
 
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