This 3 bar pattern when completed resembles this:

The setup consists of only the first two bars. The key here is:

1. The close of bar 1 must be near its low
2. Bar 2's high must not be much above the low of bar 1
3. Bar 2 must close al or near its hich {and preferably have opened near its high as well)
4. Bar 1's high should be 1+ points above the close (or high) of bar 2 to provide a decent profit – the expectation is for day 3 to aitcmpt to trade up to day 1 's high.

Bar 2 thus sets up as a potential reversal bar, and you look for a trade on day 3. If day 3 opens at or near the close of day 2 and begins moving up, this may be a good buy at anytime during the trading session of day 3. At this point the 5 minute intraday bar chart can play an additional role if you see consolidation and then a breakout to the upside. This way you have 2 time frames working for you at once (daily and intraday). Buy the breakout. The wider the range of bar 1, the better the trade.

Here is the setup:

This setup can also have the following look to bar #2 (the reversal bar):

The sell pattern: