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Monday 23rd January 2012

Here's one for those of you who like patterns. It's a 123 pattern in which the 2-3 leg is quite flat. A break of the 2-3 leg can produce a nice move as all those trapped in the 123 structure are stopped out.

While the theory is the same as any 123 pattern, you'll find this variant referred to by different names by different educators. Two of those whose work I highly recommend refer to this as either a Tap Pattern (Davin Clarke) or an Avalanche Pattern (Toni Hansen). Check out their work at the links if you're not familiar with them (no... they are not affiliate links). Of course, my YTC PAT analysis also picks these up nicely.

You'll see this on all markets and timeframes.




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