| What is unique about this Natural gas (NATGAS) technical anlsysis is that it presents a busted pattern setup. According to Tom Bulkowski and 'Bulkowski's Busted Pattern Setup', when the price breaks out in one direction, moves less than 10% away from the breakout price, then reverses, and then breaks out in the new direction, this is known as a broken pattern. When a pattern is broken, prices often start moving in a new direction, which creates an opportunity for lucrative trading. The new trend is often an influential one, which means that it endures for a longer period of time than is typical and is less likely to be a fake. If you trade the original breakout of a chart pattern, you may have a lower success rate (fewer winning trades that make less money), but if you seek for broken patterns and trade in the direction of the next breakout, you may have a greater success rate (more winning trades that make more money). Naturally, anything might could place, therefore you should use stops to preserve your position. Visit ForexLive.com for additional perspectives. |
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