Michael J.

Parsons

Another important point worth remembering is that a trend can actually

be much larger than the chart shows. It is easy to miss the fact that a
wide consolidation pattern may actually be a mid-point for a much
larger move than you realize. Take a look at a higher time frame
whenever you see a wide pattern develop. This offers an insight that you
may otherwise miss. It is not uncommon to have what appears to be just
a pattern for a small move on a daily chart turn out to be a huge move on
a weekly chart. Figures 3-4 and 3 -5 demonstrate this vividly.

Although this trading range lasts for nearly two days, it

is also an integral part of a larger trend, implying both a
breakout direetion and extent of the following move

500 E·mini 10 minute

The same trading range as seen in Figure 3 -4

.
but on a larger scale and indicating a trend
along with the likely move of the market

500 E·mini 10 minute

52