Carrying on with the theme of clusters, in the third instance price moves like this. Not for the novice trader.

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The pattern is (Boost – Consolidate – Boost – Consolidate).

You have 3 possible outcomes, 1 of which leads to reversal and the other 2 continuation.

  1. Red: Buy the rebound when price reaches first area of consolidation.
  2. Green: Buy a break out from the last consolidation.
  3. Purple: Leave it alone unless your already in a trade.

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