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10 best price action trading patterns
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=== Opening reversals === The components of an opening reversal pattern are: * Usually fast move to a magnet (support or resistance) * Reversal in 1st 60 – 90 minutes that leads to a swing for the next few hours or the entire day Most strong bull trend bars on the daily chart have at least a small tail on the bottom, which is usually caused by an opening reversal (a selloff on the open that reverses up, and it is therefore a reversal pattern). Similarly, most bear trend bars on the daily chart usually have a tail on top caused by an opening reversal down. [[文件:10PA Fig18.png|无|缩略图|800x800像素|There was a huge selloff on the open. It was a sell vacuum test of yesterday’s low, which is always a good candidate for support. The market rallied for the rest of the day.]] [[文件:10PA Fig19.png|无|缩略图|800x800像素|After a gap up, the market pulled back to the 20 bar EMA. The reversal up was the 3rd rally attempt and therefore this Opening Reversal was a wedge bull flag test of the EMA.]] [[文件:10PA Fig20.png|无|缩略图|800x800像素|Whenever there is a gap down, traders will watch for a double top bear flag around the EMA. They will sell the reversal down, hoping for an early high of the day and a bear trend.]]
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