A trader breaks down a three-part entry strategy using repair, magnet, and fork candle patterns. He enters above 620 after the fork forms, stops just below the repair candle or 10 points down, and targets the zone where price previously broke through the repair level.
As far as entry, it's one of my favorites. We have that repair still right here, our magnet. We have a candle low that goes into it, swipes it, takes those orders. And then what's next? We have that strong candle, long wick, low body, swipe that repair. And then we have the next candle that couldn't break that low. We have a fork setup forming, and that's where our entry is. So we have that 620, we're above 620. We got that repair. We have that fork entry. What would be our target? The magnet we didn't clean up. So next, what do we see? We had that strong move lower. We had that fork. We took out this, this repair. We got our long entry. We have our stop set under the low or 10-point stop. And now we're targeting this. And on the chart, you can kind of see what happened. We shot up right through it and into that repair.
