As far as distinguishing the good or bad price action patterns. First of all, try to trade with the trend, as I cover towards the end of the course. Also, you don’t want to trade a 1-2-3 pattern that has already “hit”. So, for instance let’s say that a 1-2-3 buy pattern formed a few days ago. The support area created from that pattern is at 1.4273. Let’s say the next day, the price hit that area and then moved upwards to 1.4378. That means the pattern is no longer valid. So should it move back down to 1.4273, that play is no longer valid as a support area, and should not be traded, because it had previously hit the support and move upwards. So, in summary, you are looking to trade with the trend, and then obviously trade patterns that haven’t been “taken”.
