So for example I could have waited to get in on a breakdown and reversal below my stop on the chart right?
That would have been the potential bottom of another broadening formation.
Discussion
That's right. The lower low often is the better entry for several reasons:
- stops out early bottom pickers
- completes the A-B-C extension
- sets up for the potential double bottom
- sets up for a potential bullish divergence on various indicators.
Note the 2D-RDR-L that formed at the bottom and the recent 2D-RDR-S at the top of the range.
