Some simple drawing was done with some nice support identified.

At the time I was looking at the chart it had gapped down to a potentially confluent area.

Due to some troubling news I thought of this as a gamble and declined to set up a trade. It turned out it would have moved nicely in my favor.

Do you see the potentially confluent area?  Any other comments?

 

 

The last post mentioned 2 and 3 bar patterns.

This SHORT trade is an example of a decent idea but some haste when it came to pulling the trigger. Holding out for some kind of bar or candle formation would have helped.  We see that there were inside bars, bars with equal highs and lows, and even a pin bar right at a moving average.

Do you see them?

 

I won’t mention what instrument this is or what the time frames are. Just focus on price action.

 

 

This is not a complete explanation of a trading approach, however it is useful to see how these moves play out.

These particular moves played out nicely.

This chart only has a 50 period Bollinger Band and a 20 period Moving Average

Notice after the second pattern, after the move to the middle band, there were 3 equal bottoms. When they broke, price actually moved past the lower band (not shown on chart)