How To Trade "M" pattern (part 1)
5 Tips to trade M reversal patterns:
1) Only trade M’s off the highs or overbought/supply areas.
2) Only trade M & W formations London & NY Session
3) Wait for the second leg stop hunt to the high/low of the day to confirm entry
4) Asian consolidation range should be very well defined
5. Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking.
These patterns occur on all scales and on all time frames. The time frame above is on the 4 hr, here we can clearly see the structure of the different sessions that occur on a daily basis.
The best sessions to trade are London Session and New York Session. These sessions will present the best reversal setups. Asian session should be avoided as there is very little movement.
1) Only trade M’s off the highs or overbought/supply areas.
2) Only trade M & W formations London & NY Session
3) Wait for the second leg stop hunt to the high/low of the day to confirm entry
4) Asian consolidation range should be very well defined
5. Always use proper risk management, if the Risk reward ratio is less than 1:3+ the trade is not worth taking.
These patterns occur on all scales and on all time frames. The time frame above is on the 4 hr, here we can clearly see the structure of the different sessions that occur on a daily basis.
The best sessions to trade are London Session and New York Session. These sessions will present the best reversal setups. Asian session should be avoided as there is very little movement.