[scalptrader]

I used to trade this M pattern years ago. Its a reliable pattern, and works on any compression. Its basically a double top formation, you are looking for a trend to reverse, and the best variation is when the first peak is "just violated by a few ticks". This method used to be the bread and butter of many floor trades in the 80's.

To make this yous bread and butter do the following exercise:

1. On mini's, (or any symbol), intraday, look for peaks which are the highest high for a minimum 1 hour before and 1 hour after it was formed. (very important time factor)

2. Look for a violation of this peak, by just a few ticks. (less than Vn) Your confirmation is any bar that closes below its own mid range (price action confirmation) after violation is made.

3. Stop loss, or reverse, is about 1 to 2 points above the peak depending on the market. Move it to top of the entry bar after the low was taken out and soon after to breakeven.

4. Works for stocks and forex.

5. Daily bars use 3 days on each side for time factor.

Exits, let the profits run!

This is purely a price action based method, and will give you better than 70% odds of hitting at least break even. Great for discretionary trader here. It happens a few time every week on the mini's and there are many opportunities in stocks and forex markets too! Filter them with 4 bar RSI in extremes, even better but less trades.

I left it semi complete but the core of the concept is here!

There is no luck in this game, just pure sweat and blood.