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3-line Breaks: The "Momentum Play" or Exhaustion Signal
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Old 02-29-2008, 05:56 PM
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Default 3-line Breaks: The "Momentum Play" or Exhaustion Signal

Three line breaks are my favorite candle pattern. Be absolutely sure to read (and re-read) up on them from my colleague Steve Nison's superb "Beyond Candlesticks" book.

I'll show examples in future posts, they're a lot like the ADX > 40 guideline I share with traders, in that they signify strong momentum has just occurred.

This makes *scanning* for breakout continuations and exhaustion fades (counter trend entries) much easier, when done the right way.

Any q&a about 3LBs? (three line breaks)... ? Lets talk about 'em here.

thanks traders,

-ken
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