The Three Wood Shoot – A Smaller Term Break Out Play
Posted by huntingr on November 1, 2006
This is a play where you find low volatility on the daily chart and have a clear direction already chosen on the weekly chart. This type of play could form in a number of ways such as aSmall Base or some form of a Triangle. Here is an example:
I still like to play this against my main lists – Tau Longs, Tau Shorts, Near All Time Highs, Near All Time Lows, and best and worst performing groups.
The downside to this play the bad ability for the market to head fake in the opposite direction first before making the true breakout.
