Trading the Impulse Rally Retracement — Price and Time Symmetry

6 mag

This is a concept of decaying price and time as an underlying move towards our theoretical projection, where if the underlying enters our built faded cross-section, the SL is triggered to avoid sideways consolidation and decaying contract premiums.

This ‘right’ triangle that is ‘sclene’ by nature is created by taking the furthest projection in price/time symmetry (78.6%) and drawing a vertically placed straight line to the highest/lowest point in the rally previously identified. Here, I create a ‘right triangle’ by turning 90 degrees towards my final point, which is made by the nearest projection in price/time symmetry (38.2%). In its entirety, this forms the stop loss triangle.

Rules —
1. Enter position with strike of 38.5% retracement in price and expiration of +21 days past 78.6% retracement in time.
2. SL is LOW or HIGH in PRICE from rally. Structure invalidates with new low or high made that expands rally — this protects against price decay.
3. SL is STOP LOSS TRIANGLE cross-sectional zone built. Structure invalidates with horizontal extension into faded cross-section to protect against time decay.

The beauty of this concept is the ability to trade with rules the potential retracement in price/time symmetry distinctively and without emotion, as the underlying trades to potential harmonic reversals.

13 mag

Trade chiuso: obiettivo raggiunto

QQQ closed $507.85 today 5/12/25