h Pattern

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.