Continuation Cluster

In the second instance price moves like this.

           |
           |
           | (boost)
           |
|VVVV (consolidate)
|
| (boost)
|

The pattern is (Boost – Consolidate – Boost).

  1. Wait for the break out to complete.
  2. Wait for price to enter in to consolidation.
  3. Take a trade during the consolidation in the direction of the previous boost.

 

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