DislikedTradestar,
I'm certainly not Harold, but I will do my best to give you an answer. In Harold's post #3466 he is explaining OzzieDave's trade from post 3465. What I think Harold is saying is that Dave's trade was a valid 123 pattern, but it was a continuation pattern of the trend that was already extended. Harold was saying that in a downtrend, you should be looking to short a 123 pattern after a pullback (brief uptrend), when the downtrend is just beginning to resume. This way you are selling high at the resumption of the downtrend, instead of shorting a 123 pattern in an extended downtrend that may be running out of steam. Harold and Dave I am sorry if my observations are incorrect. I am only trying to help. By the way, thanks to both of you for this great thread and chart examples. I greatly appreciate it.http://www.forexfactory.com/images/icons/icon7.gif
Thanks,
DaveIgnored
That is correct. I entered the during the continuation pattern. I will sometimes enter the continuation pattern if I have a support or resistance line bounce or rejection that gives me a bit more confidence in the continuation pattern.