Hello Traders, here is an example of how to trade a "WV" pattern which given the right conditions is a high probability trade setup.
I'll let the chart speak for itself, however here are some key notes.
A "WV" pattern by itself is a strong pattern, however its best to find setups which combine multiple factors.
In the example above you have 2 strong factors:
1) "WV" pattern (Retrace to Trendline)
2) Retrace to the 200 MA
Either one of those by themselves would not give you a strong enough setup to enter, however when you combine both the trendline retrace and the 200ma you have a very strong setup.
You can see how price reacted in a very strong manner and had a significant bounce, this is testament to how strong a setup can be when factors are combined.
Thanks everyone and best of luck trading!
I'll let the chart speak for itself, however here are some key notes.
A "WV" pattern by itself is a strong pattern, however its best to find setups which combine multiple factors.
In the example above you have 2 strong factors:
1) "WV" pattern (Retrace to Trendline)
2) Retrace to the 200 MA
Either one of those by themselves would not give you a strong enough setup to enter, however when you combine both the trendline retrace and the 200ma you have a very strong setup.
You can see how price reacted in a very strong manner and had a significant bounce, this is testament to how strong a setup can be when factors are combined.
Thanks everyone and best of luck trading!