US30 forming one of the most consistent patternsEIGHTCAP:US30
Of all the patterns I've traded, the trend line breakout, especially on the US30, has been very consistently profitable. When I see it being formed, my bias begins to shift in that direction.
The US30 is currently forming a flag, with indecision and growing tension being expressed from market participants. What I'll be looking for, as a follow-up to my previous US30 analysis, is a move down to test the previous swing low and to probe liquidity beyond that. Should this happen, it will be an aggressive move down there but also a sharp recoil back to close above the swing points low, which will form the SFP bar. This will also be just beyond the ATR, creating even more reaction in this zone, and also a 3rd push down, creating a descending wedge for even more bullish bias.
From there, I expect the trend line on the H4 to be completed and for the reversal to unfold. Target for this trade would be towards the top of the flag, at previous resistance just below the highest swing point.
Stop would be placed below the SFP bar.
Note: My long position E/S/TP are based on approximations of what would be close to ideal should this unfold as I anticipate.
