Here is an example of a reversal pattern with the complete methodology

Think of this trade as an “If-Then”.

• Weekly charts are used for the big picture. Trend, overbought/oversold and near support and resistance levels
• Daily is the trade signal
• 4 hour is for fine tuning the trade

What does the weekly say?

Price is oversold based on the MACDBB

What does the daily say?

• We have a blue square above= Long Dynamic Zone
• We are showing a potential long trade with a pull back into the sweet spot.
• MACDBB is below 0= Trade has room to move
• Ideally, we would want price on the daily to find a bottom around .87152
• The trade would then be a buy order above .88015 with a stop below the pullback and a target of .90062
• Ideally it would then be a 2:1 trade

The “If-Then” part of this trade is:

• Price has to hold above .8715 for the risk to reward to be close to 2:1
• There needs to be a clean pullback on the daily
• Price does not stall out. It makes a clean pullback and a move back up to the entry level

If any of these things are false, skip the trade!