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| Sometimes patterns don't do what the crowd expects. This failure often precedes a sharp price move in the opposite direction from the formation's natural bias. Prepare a contrarian entry strategy to take advantage of this secondary event, whenever it appears. But first exercise sound risk management to recognize failure in progress and wait for a low-risk opportunity. Start by visualizing the opposite execution for every setup that triggers through a pattern breakout. Consider what steps you would take if the setup fades and breaks against the high-odds direction. Keep in mind that this additional evaluation tracks the same reward:risk parameters as the original opportunity. In other words, each pattern failure trade must stand on its own merits. |
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