pablo101 wrote:"A cone at an extreme of a range is a fake out or a stop hunt... the opposite trend channel is confirmation of this..."
Do you mind showing any charts on this?
Thanks for the help.
Hey Pablo,
I'm so sorry I missed this...
Basically what I'm saying is similar to what MO used to say about Cones being one of the most painful patterns in markets as by their nature they t6ake out stops beyond swing highs or lows...
Above you see a High being formed after a stop hunt occurred (far left) That is the Fake/Out / A fake out means that the trend 'should' change due to the fact that the stops have added liquidity to the market and created an imbalance in the order book... (or said otherwise) The opposite trend channel that gets formed (either via LH or HL) is now the "new trend direction of the trend channel...
This next chart is messy but it shows what I'm talking about...
Hope that makes sense...
Happy to jump on a Zoom call or chat to you on a Discord regarding this if you have the need.
Cheers
