A trend-continuation pattern that I honestly adore. These are best viewed on smaller timeframes, usually 5 minute, where price will tap an area several times before finally thrusting through it. Its important to note that these work best during more volatile times, when there is a lot of volume in the market. Very little drawdown and big reward on these, in a little amount of time, usually.
1. Price makes at least 3 or 4 touches at a high or low area.
2. In examples below, price makes higher lows (lower highs for shorts)
3. Price lunges toward the area a 4th or 5th time, enter long or short before the level gets hit on the intial thrust. Getting in before the level gets hit allows you to move to breakeven in the event of a false breakout, or another fade.
Click any of the images to expand.
