1) We have to find the strong impulse move ( At least three impulse move, I like the big bars). Lets say a rally or a drop.
2) Right underneath we have to find a consolidation area where we will mark the zones from the body to the wicks.
3) Drawing the zones is an art, so make sure you have a good look at them, Ignore the wicks at the top if you are buying and ignore the wicks in the lower side if you are selling. Refine the zone and you can trade it with 1:1 RR. Stops below or above the zone + few ticks.
4) Divergence works pretty well in these kind of zones with engulfing patterns and pinbars.
5) Harmonic trading can be used here, most probably when the ratios fall inside the zone, could a very very good potential trade.
2) Right underneath we have to find a consolidation area where we will mark the zones from the body to the wicks.
3) Drawing the zones is an art, so make sure you have a good look at them, Ignore the wicks at the top if you are buying and ignore the wicks in the lower side if you are selling. Refine the zone and you can trade it with 1:1 RR. Stops below or above the zone + few ticks.
4) Divergence works pretty well in these kind of zones with engulfing patterns and pinbars.
5) Harmonic trading can be used here, most probably when the ratios fall inside the zone, could a very very good potential trade.
