h Pattern
The “h” Pattern -a pattern that is shaped like the letter h can be spotted in the Forex market, Futures market and Stock market. This Pattern has delivered nothing but success for me. I spoke about this pattern once before Here. It’s similar to a bear flag however it’s distinctive.
With a Bear Flag pattern the consolidation within the large body of a bearish candle is within half the bar, or at times 1/3 of the bearish bar. With the “h” pattern the retracement can be well with in 50%-70% of the body of the bearish candle.
In Forex, there are a lot of wicks, however it takes time, as in plenty of screen time, to understand the nature of the h pattern, Can you visually See it?
By Spotting the Development of the h pattern, I executed a short at the top of the formation within the red candle. It’s all about optimizing the entry. Once you have confirmation, you can add on the break of the structure.
Crude Oil formed a nice h pattern on a 15min time frame. and down it went from there. The larger the time frame, the bigger the move.
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