Patterns repeat – again and again and again!

And in time, many of your trades will start to look similar to others.

Let’s revisit a trade from a prior article – Volatility Contraction within a Sideways Range.

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

And then another trade, just this last week.

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

<image: Patterns Repeat>

There is a real benefit to post-session reviews of the trend structure.

Over time you will discover patterns such as this which seem to repeat and which seem to offer potential edge. A hypothesis worth exploring in further detail.

And potentially a trade idea to add to your toolbox alongside other trades. 

For while this is not “pure” YTC PAT, it’s a slight variation on the theme. And it blends in nicely with the idea of stepping back and waiting for the better opportunity at the edges… except when the market offers something intra-range that screams out to be traded.

It came about through simple post-session reviews of trend structure. And questions – “Given the break of the sideways trend, was there any way I could have seen this earlier before the break occurred?”

Study the trend structure -> Ask questions -> Develop a hypothesis -> Test the hypothesis.

Go for it. You have work to do.

Happy trading,

Lance Beggs


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9 Comments

  1. Great article Sir.

    Helps a lot to see the benefits of every day MSJ study.

    An off topic observation: what an increment of candle range from July chart vs January chart!
    Just by watching the vertical scale is easy to note, almost triple range.
    Do you agree the market conditions these last couple of months are the toughest since Covid crisis?

    Cheers.

    1. Hi Sergio,

      Great observation. I missed seeing that. It’s certainly the case though – conditions have changed since sometime in November. Once the topping pattern started on the daily/weekly.

      The advantage is some incredible ranges, when you can catch them. But it’s not always been easy.

      Cheers,
      Lance

  2. Hello Lance,
    Always giving great insights, thank you for that.

    Do you take two orders when you get a confirmed set up and then close one once it approaches the edge and leave the other one as long as price keeps going in your direction?

    Regards

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