2B Dragon Reversal: no need to catch falling knives.
Before I devoted to long-term trend trading, I used to scalp lower time frames.
This was my favorite pattern because of it's well defined rules. Similar to many other Harmonic Patterns each leg had very specific ratios to consider its validity. It has well defined stops and targets. Really good pattern because it shows up so frequent across all charts, timeframes, and markets. Also it can get you into trend reversals safely without "catching a falling knife" based on emotional impulse buying that new traders tend to do.
I encourage you to look into the family of reversal pattern types so that you can level up your trading arsenal.
I also encourage you to look into TREND TRADING versus reversal trading. I don't trade these kinds of patterns any more, and I got tired just drawing this out. I am spoiled by just taking trend signals and letting the market do all the hard work for me.
This was my favorite pattern because of it's well defined rules. Similar to many other Harmonic Patterns each leg had very specific ratios to consider its validity. It has well defined stops and targets. Really good pattern because it shows up so frequent across all charts, timeframes, and markets. Also it can get you into trend reversals safely without "catching a falling knife" based on emotional impulse buying that new traders tend to do.
I encourage you to look into the family of reversal pattern types so that you can level up your trading arsenal.
I also encourage you to look into TREND TRADING versus reversal trading. I don't trade these kinds of patterns any more, and I got tired just drawing this out. I am spoiled by just taking trend signals and letting the market do all the hard work for me.