A V-shape reversal trade pattern occurs when price sweeps an obvious low and immediately reacts upward, forming a three-candle inverse pattern with a fair value gap, which serves as an excellent reversal model for futures trading on the 5-minute timeframe.
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Master the V Shape Perfect Reversal Trade After Liquidity Sweep!Added:
Overall, I thought this was a pretty reasonably good trade.
And you could see, you're always looking for with my model, these really obvious lows like this being swept. Generally, what you want to be seeing is like this.
This is your price action.
You want to be looking for an obvious low like this.
You want to see that really good sweep and the instant reaction like that with the fair value gap. You want to see it look like this V-shape like this. And like I said, it you want to have this three candle pattern inverse pattern.
The 5-minute I trade mostly at the minute is what delivers this for me.
Three candle pattern inverse like this after a sweep of liquidity is an excellent reversal model.
And as you can see with this particular one for Asia session last night, this was a good trade.
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