I have highlighted two patterns here,

One being a reversal, the other being a continuation move.

Both provide opportunities to trade.

Pattern 1

Without drawing this structure into the market a trader would be looking to continue to trade the trend short in the market.

Once the 3 touch structure of the pattern plays out, price has found a base and potentially bottomed out. This is where using our strategy refinement criteria we can begin to look for entry

Pattern 2

Now we have had some commitment in the market, what next?

The next safest way to enter is to wait for a continuation move, this is where pattern 2 comes into play.

You see, although price has been manipulated around the pattern, price action still respects our pattern structure.

We can clearly see that nice three touch structure play out where we can look to get involved in longs.

Going back to optimisation #1 The red areas highlighted within this action of price action are where we would look to drop down for refinement on entry.

Pattern Optimisation #3 Improving The Skill Of Market Discretion

What separates the most profitable traders with those who are just beginning out?

The answer is experience.

Like any profession, experience will eventually pay dividends with your overall profit. You will begin to see the market in different ways, understanding like second nature where the liquidity is saturated, where potential entry points are and most importantly when not to take a trade.

Sounds good right? But how is this relevant to pattern setups?

Well patterns will help with the development of your market experience,

See them as the guidelines to help you pick the highest value areas but not only this:

⦁ Give you the correct overall bias
⦁ Help you understand when price action is changing
⦁ Simplify your analysis

Unfortunately, though, understanding patterns will not come easy. That’s where our expertise comes into play. And this whole website gives you a taste of what we can do.

Happy Trading!