Trading A "WV" Pattern - Trade Setup Example
Hello Traders, here is an example of how to trade a "WV" pattern which given the right conditions is a high probability trade setup.
I'll let the chart speak for itself, however here are some key notes.
A "WV" pattern by itself is a strong pattern, however its best to find setups which combine multiple factors.
In the example above you have 2 strong factors:
1) "WV" pattern (Retrace to Trendline)
2) Retrace to the 200 MA
Either one of those by themselves would not give you a strong enough setup to enter, however when you combine both the trendline retrace and the 200ma you have a very strong setup.
You can see how price reacted in a very strong manner and had a significant bounce, this is testament to how strong a setup can be when factors are combined.
Thanks everyone and best of luck trading!
I'll let the chart speak for itself, however here are some key notes.
A "WV" pattern by itself is a strong pattern, however its best to find setups which combine multiple factors.
In the example above you have 2 strong factors:
1) "WV" pattern (Retrace to Trendline)
2) Retrace to the 200 MA
Either one of those by themselves would not give you a strong enough setup to enter, however when you combine both the trendline retrace and the 200ma you have a very strong setup.
You can see how price reacted in a very strong manner and had a significant bounce, this is testament to how strong a setup can be when factors are combined.
Thanks everyone and best of luck trading!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.