These patterns often print multiple doji and hammer lows prior to a final break as insiders clean out stops at the extremes of the pattern. Fallen trend that returns to the range of these candles offers low risk entry as price bounces off resistance. Rapid price movement tends to repeat each time that a trend enters its boundaries. Potential reward spikes sharply through these unique zones. But watch out.
Sudden reversals tend to be sharp and vertical as well.
Tight stops are advised. Rapid price movement tends to repeat each time that a trend enters its boundaries. Potential reward spikes sharply through these unique zones. But watch out. Sudden reversals tend to be sharp and vertical as well.