Examples of reverse trades:
A. EURCAD
Trade focus numbers for May 15/16 - buy break of 3714 and sell break of 3641. Setup candle broke below 3641 but no trigger as no candle closed below the setup candle. We now noticed some confluence of events:
- potential bullish divergence, and
- a 1-2-3 formation
Break above point 2 gives us a potential buy 50 pips before the TFN buy trigger as long as PA does not close below point 3, where a stop should be viable. With CSM and MTF confirmation, long is taken @ 3664 and 1st PT easily attained @ TFN 3714. PA dances around this number for few candles and continues its up move for another 60+ pips
B. EURUSD
Trade focus numbers for May 13 - buy break of 4276 and sell break of 4206. The short trade did trigger for 15+ pips but reversing with a 1-2-3 formation, giving us an opportunity to consider a possible buy above the #2 point with stop @ the #3 point and the trade focus buy # as PT1, which PA easily broke through.
C. EURUSD
Another A-B-C bearish formation on the same day, May 13
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