In the first instance price moves like this.

     |
     |  | (rebound)
     |     |
     |       |
|VVV       (pull back)
|
| (boost)
|

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

  1. Wait for the pullback to reach area of last consolidation.
  2. Trade in the direction of the last boost.

 

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