We have the market moving in a clear downtrend (bearish) and there is a classic 3-bar pullback pattern that develops by moving up against the trend.
How do we trade it? Wait for three consecutive bearish bars. Then, sell above the next bullish bar (aggressive). I would rather you don’t enter the market short until the candle has moved at least half the distance of the third candle in the pullback.
PS:
In a up or bullish trend, the 3-bar reversal pattern would be the opposite pattern with 3 bars or candles moving down against the downtrend. And you could trade the market long.
How do we trade it? Wait for three consecutive bearish bars. Then, sell above the next bullish bar (aggressive). I would rather you don’t enter the market short until the candle has moved at least half the distance of the third candle in the pullback.
PS:
In a up or bullish trend, the 3-bar reversal pattern would be the opposite pattern with 3 bars or candles moving down against the downtrend. And you could trade the market long.
