I was asked by a Spike Member to write a few comments about entering the 1,2,3 Bottom or 1,2,3 Top patterns. The thing to remember about is that these are reversal patterns, not trend continuation patterns. As such, it really doesn’t pay to jump the gun and enter early, only to watch the set up collapse. I prefer to enter on a show of strength to confirm the pattern. So, I look to enter on a market close above the #3 move if a bottom, or to short below it if a top. In the case of SRS, a trader would enter around 26.61 on the 5/14 close. I would exit four days later around 31, and look to buy again on the pullback to the rising MA. Stop goes below the pattern at around 24. Occasionally, there is a trend continuation entry above the #2 high, but in this case, I would consider re-entering if price closes above the 20 MA again in a narrow-range day.