A trader explains the H pattern setup that forms around the New York open. After price drops to the 20s and bounces, you can either wait for new structure or trade a continuation by reversing off those lows or following the H pattern as it builds its lower leg.
So the next setup, and this is my favorite setup, my H pattern setup. So this is, I believe, off New York open. You had that strong move down, you had this candle down into 20s, you bounced off the 20s, and now you missed this long. You didn't take this long. Well, now you kind of have two options. You can either stay out of the market, wait for price to form another structure, or look for a continuation. So you can either go for a reversal back, take out these late shorts on a reversal off the 20s. You missed it. Well, what's next is you can kind of see as the market is forming another structure. You kind of see that rollover pattern. You had that sharp move higher with a wick into these 80s, and now you're building out that H into a continuation of the lows.
