Friday, December 25, 2009

Combining the ABC pattern with a GVN condition

If you have been reading this blog for a while, you probably noticed that I often write about AMD.
Besides the ABC pattern, I tend to trust what I call a GVN condition ;
Gap, Volume (very strong), and News (high impact news)
When a GVN condition occurs with an ABC buy trigger ; the signal is VERY strong !
Can you use the GVN condition alone ? Yes, I often do, but I first wait for price to create a quick flag (tight price channel) after the gap. Then ? I buy the price break out above that flag.

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