consolidation pattern
1-2-3 pattern basics
One can never cease showing 1–2–3 pattern – this most basic and essential of formations in the market. In my view, the 1–2–3 high or low is the buttress of almost every great move ever made in a market. Why? Because virtually every trend, great or not so great, can start from it.
High Probability Trades for Daytrading
The first trade is an intraday pattern of a 5 minute bar chart that is the basic „dip and rally“ setup for a buy breakout.
The consolidation at the high of the day is the key to the success of this setup, as it is with other pattern variations. The longer and tighter the consolidation, the better. This is a setup that develops through the day. Another more obvious pattern looks like this:
Another intraday consolidation pattern that you may see looks a bit different but it can also be a powerful setup:
