
| Salvaging an Unintended Position |



It is not uncommon for pattern formations, signals, and indicators to present very positive projections, only to turn out exactly opposite of what the position is supposed to be. In the picture above, notice how the three black crows form a bearish pattern formation. At time of recognition, the only logical position to take is 'short'. Refer to the picture on the right. After taking a position notice how the market accelerated upward after about 5 candles. If acceleration was left unchecked, 'stop-loss' will be hit. Candlestick Pattern Recognition (CPR) will attempt to salvage (no guarantee) an errant position by closing the position before it hits the 'stop-loss' level.
trading, CPR will attempt to stop a normal entry at certain points where the position appears determined to accelerate to the 'stop-loss' level. With this, the pain and stress of seeing a 'stop-loss' ruining your day, is slightly mitigated. |