can you use the wick of trading pattern
for day trading that is the question
that I will answer in this video so stay
tuned and don't forget to Like and
subscribe this is the basic theory of
the wake up trading method I've already
covered this in a previous video so I
won't go into detail but what I do want
to highlight here is the few subtle
differences that I find in my actual
trading that helps me for entries and
that patter when I trade like your one
minute timeframe or a 5 minute timeframe
the first difference is that here the
second high in the phase B in my
experience has been much much lower than
than this point it's usually in that
area and then I'm able to connect a line
between that peak and that peak over
here and then it breaks out of that
accumulates a bit then does what I call
the pump-and-dump basically where it
goes high quickly but comes back to test
that newly-found support once it broke
through the resistance so let me just do
a quick drawing so you can really see
what I mean so the market is coming from
the top so we are in a downtrend now we
have the first bounce which is our first
high of the pattern then we have another
low which is either equal or slightly
lower the first one doesn't matter as
long as it's at least equal then we have
the second bounce and instead of going
this high like in the schematic in my
experience it comes much lower then on
the third wave you have the bear trap
which breaks through that second low and
is from that point that I'm able to
connect the two loaves and the two highs
to make a triangle shape it creates sort
of a wedge but the way I like to draw it
is I do a straight line at the bottom to
remind me of the bear trap because it
helps me in the visualization of where I
am in the pattern and clearly
demonstrates the spring so here is the
spring and now this is where it gets
interesting in a bit
and the theory is that it comes here and
it does kind of a little phase of
accumulation on top of that support and
once it has done that then it goes up
really aggressively usually not as high
as the highest high of the pattern but
quite high and very fast and then it
comes back and test even lower than the
this one here because it's a trading
against that support right so in this
zone here is where I'm I want to usually
enter my trade as soon as I see that it
really holds like if it sometimes if
it's a failed one it's gonna go right
through and then forget it if this slope
gets penetrated it's it's over the
pattern is fail and even at that point
usually I all short because it's a
failed so I'll just reverse but so
that's why I don't really care because
the risk is so minimal if you enter at
this point that it's worth to take the
chance you know even if you're really
against the trend when you do this you
know you're noticing this usually I
noticed this on a 15 or 30 minute
pattern I know this is something that's
a bit rounding with a bit of a few long
candles and then I go on to a smaller
time frame and I look for a three wave
pattern of some kind and and then from
this point then it starts to go up and
and what I do for my targets is I take
the high over here and I use a Fibonacci
retracement and I'll come and connect it
to the low and the six one eight is
going to be my ultimate point where all
okay I'll just I'll just take my money
here usually at this point it comes back
down and it comes back to test
this point and then it goes all the way
back up and then the pattern is complete
in my experience this is what has been
happening but the other version is the
actual SOS that is in the pattern where
it goes on top of the highest high here
of the pattern and then it tests it as a
support and then it goes but in my
experience many many many times it comes
back to test this or somewhere around
that zone and then it flies off I mean
just to play a clip for you guys that
happened yesterday actually I'm filming
this on Saturday I don't know where I'm
gonna upload it but this was yesterday
Friday all right so I think I spotted a
potential wake of reversal pattern so I
noticed it from this there's wakes here
at the bottoms so I'm going to check on
the one minute time frame to see if we
can find a three wave pattern yes there
it is
so let's trace it out real quick so
we're coming from the top and now we're
gonna do our waves just to show you here
so I got one wave there then an other up
wave that wasn't able to quite reach the
previous stop as you can see here so now
what I would want is to be able to do a
triangle and show you that we pierced it
on the upside and kind of created a
small pennant so let's trace this real
quick so now we have tested a little bit
but I would like to have an entry right
here because normally it would do like a
pump and dump like this and it would
come back to that zone and then I would
buy and my
I would have my stop-loss let me pause
all right so we got a fill so I want to
emphasize this little point here the red
arrow because it's all because of that
point that I was able to identify this
reversal pattern in the first place
because without this the pattern doesn't
exist what I want is a shift in supply
so this was a bear trap basically
whoever got short at that point is now
stuck and it creates this kind of
reversal that's very very aggressive so
now I'm going to fast forward the video
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as you can see here the six one eight
were just slightly above and because
what I did is I took the highest high of
the previous move and then I connected
it to the lowest low over here to
calculate my Fibonacci but here you can
see that the three two was just touching
the the price there and then it would it
this bar came close but not quite no
cigar on the zero point five and it's at
that point that I should have revised
what I should have done is was take this
either this low here so that the spikes
here would touch but if I wanted to make
sure I could have just brought it here
so this way I would have had a target
because now I lost a few points because
I had to wait for this bomb here let me
show you real quick what I meant so you
have this bearish engulfing so that's
very bearish that's it's at that point
that I got out so could have made a bit
more but you know it's no trade is ever
perfect but it's close enough so that's
it for this example guys I'll see you in
the next video I'll do another wick of
after this so take care and please
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you
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