Trading Simple Patterns (TSP)
*I will keep this main post simple.
Before I Start I would like to tell that I am not looking for some kind of a bank manipulation technique. I don't believe in stop level hunting, institutions levels, etccc...
No smart money or Dumb money game either.
Just patterns! (not even harmonic or Elliott wave)
SIMPLE PATTERNS!!
Markets are usually in one of two conditions i.e:
IMPULSE , CORRECTION , IMPULSE , CORRECTION .......
This is also widely referred to as the NATURE of the market.
*Impulse(also referred to as trending)
*Correction(also referred to as ranging)
When a market is trending either UP or DOWN it does two things within corrections i.e:
CONTINUATION / REVERSAL
What are the patterns then?
Well everybody knows it, they are the following :
CONTINUATION PATTERNS -
- FLAG - Bull FLAG / Bear FLAG
- TRIANGLE - Regular TRIANGLE , Expanding TRIANGLE
REVERSAL PATTERNS -
- WEDGE - Rising WEDGE / Falling WEDGE
- CHANNEL - Ascending CHANNEL / Descending CHANNEL
- HEAD & SHOULDER
- DOUBLE BOTTOMS / TOPS
This is all I can tell you right now, honestly that's all you need.
If you need more info just search on google images for simple trading patterns you will be set.
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So to sum it all up:
We identify the market nature (Impulse or Correction)
We identify patterns (Mentioned above)
Risk 1-3% per trade, stops on points where current patters doesn't hold up
Utilise pending orders and trailing stops/profits
Journal everything on Tradingview private ideas or use 3rd party apps like notion or Evernote.(or even better share it in this thread)
No indicators
We do not count waves
No harmonic trading
No EA's
There are many popular courses and free YouTube videos on this style, please do your research. I am not here to teach but to learn with similar styled trader
This is how a chart would like
https://www.tradingview.com/x/smZTnXaJ/
-Backhoe
If anything needs to be added I will edit this post.