When price is at a PRZ or extreme, this is a good place to seek smaller Bar size formations accompanied with momo.  I generally like an STRange 8 bar setup, below is a great example today in GC_F.  The 30 min chart completed a Bearish Bat as portrayed by the T Bar.  If you have Neoharmonics it will autoplot the T-Bar, this means that price has tested all the levels of a pattern’s PRZ, thus completing the pattern.  It’s the other aspects described below that help determine if the pattern will go into Retrace Mode or not.

The first chart shows the 30 min Bat on the right side, the left side is my STRange 8 bar chart showing a bar formation, Shooting Star with a followup bearish bar, accompanied with negative divergence as shown with the red arrows.

The second chart shows that it was one of those ideal setups that gave great rewards and minimal risk.  There were also multiple opportunities to enter a short, the initial two as outlined above, and another opportunity at the 30 min PRZ bottom (black dotted line).  Another Shooter with a followup bearish bar while momo held below it’s midpoint.

I’ve also pointed out that if you took the initial short, there was reason to take profits or protect a short position at the bottom of the PRZ.  The pattern’s ideal minimum target is represented by T1 at the 30 min blue zone, this will be a decisive point.

Trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results.