Last week we looked at the following chart sequence showing an obvious symmetrical triangle pattern within my higher timeframe chart.
See here if you missed the recent article – http://yourtradingcoach.com/trading-process-and-strategy/higher-timeframe-pattern-breakout/
I don't know if I was somehow influenced by that article. I don't usually look for patterns on the higher timeframe chart. It's primary purpose is for establishing an S/R framework.
But since putting that article together, I'm seeing them everywhere! 🙂
As I said last week… sometimes they just stand out as so obvious that you can't miss them. So I watch them for potential trade opportunity around the edges of the pattern structure. Usually for two alternatives – a breakout failure or a breakout pullback.
So let's do one more example. A little different this time in that the breakout extends much further before commencing the pullback. The same concept applies though – take the first pullback against the edges of the structure.
Here's the higher timeframe chart…
Zooming in now to the Trading Timeframe chart at the time of entry.
(a) Higher Timeframe pattern
(b) Trade BPB / BOF around the edges of the structure.
It's not how I typically trade, but I expect a whole strategy could be based around the idea.