A trader breaks down a popular pattern-trading method that enters when price stabs a low, uses a 1:12 risk-reward ratio, and claims it's a scam. He shows a real trade entered at 10 AM that hit its target in 2.5 hours, but argues the method's mechanics are misleading.
Watch this. You have your entry as soon as the low gets stabbed. Stop loss goes below the low and the target to the upside. You're looking at a 1:12. And if I just zoom out, there you go. Beauty of this model is it happens on the higher timeframe for direction, and then it happens again on the lower timeframe for entry. You had an entry right here at 10 AM exactly, and target was hit in the afternoon. So you're looking at 2 5-hours and a possible 1:12 opportunity.
