I frequently see this pattern show up all the time on any currency on any stock or future that i have traded i have seen this pattern time and time again. Specifically trading options on NADEX we can have some theta that can help us with risk management. I try and catch the right shoulder that provides us the greatest opportunity- Which gives us one of three way we can give us a confluence at this area one highlight the wick of the left shoulder or the high to the close of the last bullish candle and highlight it across to give us failures of opportunity on the right shoulder. Then if you want to get nice entries if you want extra confluence go ahead and use fibonacci along with candlestick patterns to go ahead and confirm price action. we use fib from top of head to the bottom . you see the right shoulders falls off in the highlight at the 61.8 fib aka golden ratio. For one last confluence we used Candlestick analysis on a shorter time frame giving us a RED (BE) or bullish engulfing pattern which gives us 5 reasons to enter this trade
1. HSP Pattern
2. failure of left shoulder is common occurrence with right shoulder
3. Fibonacci 61.8 right shoulder
4. Candlestick analysis RED (Bullish engulfing Pattern) (BE)
5. Risk reward is it worth it? 3:1 opportunity Yes its worth it
1. HSP Pattern
2. failure of left shoulder is common occurrence with right shoulder
3. Fibonacci 61.8 right shoulder
4. Candlestick analysis RED (Bullish engulfing Pattern) (BE)
5. Risk reward is it worth it? 3:1 opportunity Yes its worth it