ABSTRACT
There are three types of tactical operations: getting into new commitments; getting out of commitments that have moved as expected and show a profit; and getting out of commitments that have not moved as expected, whether the transaction shows a profit or a loss. The more difficult problems arise in making new commitments correctly, and in the very important defensive operations of getting out of losing commitments with the least possible loss. The chapter shows certain moves, such as adverse breakouts from Symmetrical Triangles or Rectangles, advise people simultaneously to get out of commitments in what is clearly the "wrong" direction and to make new commitments in the "right" direction. New commitments may be made in certain cases within some patterns: Rectangles, Wedges, Flags, and Pennants. All commitments are protected by stops from the moment they are made. Stops are moved, as conditions justify moving them, but always in the favorable direction, never in the adverse direction.
