{"id":43046,"date":"2016-01-26T13:35:48","date_gmt":"2016-01-26T18:35:48","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=43046"},"modified":"2023-08-01T19:33:42","modified_gmt":"2023-08-01T23:33:42","slug":"the-edge-is-not-just-in-the-chart","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-edge-is-not-just-in-the-chart","title":{"rendered":"The edge is not just in the chart"},"content":{"rendered":"<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/nWhBOp-WklE\" width=\"600\" height=\"338\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<figure class=\"tmblr-full\" data-orig-height=\"832\" data-orig-width=\"971\"><img decoding=\"async\" src=\"https:\/\/41.media.tumblr.com\/c04161a057a7c5b72a5e5226ae684850\/tumblr_inline_o1kpzjQePh1slheli_540.png\" alt=\"image\" data-orig-height=\"832\" data-orig-width=\"971\" \/><\/figure>\n<p>During mentoring sessions after the open with our newer traders, I ask each of them what they traded.<\/p>\n<p>First up today was a trader who shorted a failed breakout in ENOC.\u00a0 He likes that chart pattern.\u00a0 But is that simple chart pattern enough to trade this pattern with edge?\u00a0 No.<\/p>\n<p>There was more to this trade than a failed breakout.\u00a0 It had run up a bunch yesterday.\u00a0 It gapped down on the open.\u00a0 It was holding below VWAP for a significant period of time.\u00a0 All of this made the failed breakout more likely to work.<\/p>\n<p>So was this added information enough to trade this setup with edge?\u00a0 No.<\/p>\n<p>Even with this added information that shorting of the failed breakout is not enough.\u00a0 You need more edge.\u00a0 And this is where the unsuccessful trader tends to fail.\u00a0 They trade simple patterns that do not have edge, but think they do.<\/p>\n<p>There are different ways to find edge, after spotting interesting chart patterns.\u00a0 One way is to Read the Tape.\u00a0 (It\u2019s not the only way.)\u00a0 For example during the failed breakout, notice bids far from the offer.\u00a0 Or a spike above the breakout area and then a fast return below. These are some tells of a potential failed breakout.<\/p>\n<p>Here is how one trader attacked this setup:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43051\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/enoctim.png\" alt=\"enoctim\" width=\"600\" height=\"377\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/enoctim.png 852w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/enoctim-300x188.png 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/enoctim-768x482.png 768w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>The point is to overlay another indicator(s) onto this failed breakout pattern.\u00a0 These extra indicators, this extra information, are the difference between trading with edge and trading without edge.<\/p>\n<p>*no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>During mentoring sessions after the open with our newer traders, I ask each of them what they traded. First up today was a trader who shorted a failed breakout in ENOC.\u00a0 He likes that chart pattern.\u00a0 But is that simple chart pattern enough to trade this pattern with edge?\u00a0 No. There was more to this trade than a failed breakout.\u00a0 &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/the-edge-is-not-just-in-the-chart\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":43051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3317,788],"class_list":["post-43046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general-comments-2","tag-chart","tag-edge"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The edge is not just in the chart | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/the-edge-is-not-just-in-the-chart\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The edge is not just in the chart | SMB Training\" \/>\n<meta property=\"og:description\" content=\"During mentoring sessions after the open with our newer traders, I ask each of them what they traded. First up today was a trader who shorted a failed breakout in ENOC.\u00a0 He likes that chart pattern.\u00a0 But is that simple chart pattern enough to trade this pattern with edge?\u00a0 No. There was more to this trade than a failed breakout.\u00a0 ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/the-edge-is-not-just-in-the-chart\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-26T18:35:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-01T23:33:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2016\/01\/enoctim.png\" \/>\n\t<meta property=\"og:image:width\" content=\"852\" \/>\n\t<meta property=\"og:image:height\" content=\"535\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Bella\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta 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