Info

Breakout bar

. Breakout bar

If prices breakout to the upside of a Ledge or a Trading Range formation, the first instance of the failure by a price bar to make a new high creates a Ross Hook. If prices breakout to the downside of a Ledge or Trading Range formation, the first instance of the failure by a price bar to make a new low creates a Ross Hook (A double high or low also creates a Ross Hook).

Rh I ^.Breakout I bar

A Hook differs from a 1-2-3 because it doesn't have to have a definitive high or low and it doesn't have to have a full correction. It may pop out of a congestion area such as a Ledge or Trading Range ross hooks occur at any level, but only in trending markets, whereas 1-2-3 lows occur at intermediate and major market lows, and 1-2-3 highs occur at intermediate and major market highs.

A Ross Hook does not need more than the failure of prices to make a new high/low in a trend. In a down market, as soon as you have an equal or higher low, you have a Hook. In an up market, as soon as you have an equal or lower high, you have a Hook.

The next figure shows what is meant by Ross Hooks.

Some Ross Hooks (h) and their accompanying entry points.

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