Today I want to share this powerful setup and ideas how to trade it. They do not occur to often especially on the higher time frames, but when they do, it is a really good setup with high risk reward ratio. Requirements for this pattern to qualify are pretty simple. There has to be 2 consecutive higher highs and 2 consecutive lower lows. Connect those points with a trend line and look for a next touch. This will be the entry point, of course confirmed by a price action. Very often You will have more than one bounce off of those lines. You can trade it as long as it holds as support or resistance.
To improve Your results take part of the profit at the middle of the pattern and close the rest of the position near the opposite side of a pattern. Or use management strategy like trailing stop or averaging in or any other method that You may use.
To improve Your results take part of the profit at the middle of the pattern and close the rest of the position near the opposite side of a pattern. Or use management strategy like trailing stop or averaging in or any other method that You may use.