WAF - About to Breakout, page-176

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.



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