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.

These are secondary and somewhat lower probability patterns. But when paired with other analysis, such as momentum from the market maker screen, they may be traded successfully.

The above pattern may well be showing price strength to the upside with successively higher swings down in price as it goes back up lo test the same high price, wail for some consolidation before buying a breakout to the upside.

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:

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.

This is a variation on the 1 bar reversal. It is a 4 bar pattern with 3 bars setting up the trade for the fourth day. Day 1 must close at or near the bottom of that day's range. Day 2 opens at or near the close of day 1 and continues the prior day's sell off. Day 2 must also close at or near the low of that day's range. Day 3 must open at or near the close of day 2 and retrace back up to (or very near) the high of day 2. Also, day 3 must close at о near its high of the day If the stock opens or day 4 near the close of day 3 and begins to move up, buy it. The wider the range of bar 1, the better the trade.

Here is setup: