I’m gonna test a strategy I haven’t given attention to in the past.  The basic strategy is as follows:

• Find the midpoint of a consolidation period
• Watch the expanded chop chop and notice the direction of the first move. Do nothing else
• When the price moves back down to the midpoint of the previous consolidation, invest in the direction of the next move.

Visualized:

• Blue box – consolidation.
• First red arrow – first move
• Second red arrow – holders sell, then price moves back to midpoint of blue box.    It usually consolidates for a a few bars then,
• Third red arrow – the real move happens and where I plan to enter long.

This is just a slight variation to pullback/support test. Nothing too fancy, but I’m more concerned with midpoints of consolidation.

Few charts on watch:

I may suck at this for a while, but here are a few I’m watching headed into next week.

AXDX – watching how it handles the midpoint – then follow the move.

AXDX Daily

RSG – a little messier, but the next move is the right one to own.

RSG Daily