1. Identify pattern 2. Mark 6 bounces 3. Place support or resistance rectangle at LL/HH level. When price cannot break or lose its momentum at the KEY level it has a high probability to break the pattern. Also, enter when price form double bottom or double top. 1. Pattern 2. Dow Theory 3. Support/Resistance
Price broke lower timeframe's Higher Lows could start of the correction move.
Price formed bearish pattern after breaking before higher low of bearish pattern. Price has the potential to go down.
- Price broke down the structure - Price made HHs - Price made DB Price is approaching the possible demand zone. Possible buyers (funds, suppliers, traders) can be waiting.
1. Price made double top 2. Price is making possible impulse which is trending down
Price got wick rejection from upper resistance. Possible for short entry.
Possible bullish pattern inside bearish pattern Price is under dow theory
B-TRENDING DOWN M-POSSIBLE IMPULSE S-DIDN'T BROKE ANY HIGHS Price can go down in the next 10 days. After 10 days price could correct itself.