What to look for:
Ideal setup for this trade is following long consolidation, but it won’t always happen like that
Find a large Green candlestick followed by a short red candlestick with a short tail.
1st Candlestick – Large Green Candlestick
2nd Candlestick – Short red candlestick with short tail
3rd Candlestick- Green candlestick rising above the high of the previous two candlesticks
You will start your trade when the 3rd candlestick goes above the first two candlesticks (at any point, you do not want to wait to start the trade when the 3rd candle has already closed)
Your stop loss should go at approximately the bottom price of the second candle. (lowest price at either the tail or the close)
Your typical target should be the most recent resistance price.
Pros:
very easy to spot
typically happen when the market first opens
works with multiple charts (1, 3, 5, 10 minute charts)
Cons:
Sometimes have to keep an eye on multiple (20-100) charts to find this pattern frequently
