1) Position sizing: how fast do I gain or lose lines
2) Money management: how much do I gain or lose at each line
3) Consistency: how often do I reach a specific goal within the allotted time
4) Ideas: what can I expect based on unchanging truths
The most important technical skill is telling the difference between a pattern and a breakout.
What does a breakout look like?
The pattern is a triangle and a triangle is congestion so a breakout looks like price moving away from congestion.
At the first blue x you see an inside bar, a doji, and then a breakout.
At the second blue x you see a stall with a small body and long upper wick, the next bar peaks its head over the previous bars high and then there is a low breakout.
At the third blue x you see a long wick filling out more of the body of the cone. The up and down is price falling into a lower cone that is within the cone
Price broke to new lows and entered the cone, failing to maintain new lows, so price is HIGHER than something.
The lines are just 15 degree angles that were dropped on the breakouts marked by the blue x.
It is not exactly how I would mark the chart but I just wanted to show you that you don't need to get fancy.
Just because you see a cone that doesn't mean that you understand it; you have to watch the price action every day to learn its secrets.
- GBPUSDDaily.png (43.78 KiB) Viewed 2459 times
