This is one of the simplest ways to determine Daily/Weekly/Monthly bias.

(Swing High and Low candlestick pattern).

Study the annotations in the diagram below and backtest it.

Have a great weekend. 🥂

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Discussion

Thanks for sharing.

How to trade it?

Here is one idea, to get your input.

After the third candle, set a sell limit order a little bit below the low of the second bar.

I'm taking about the bearish scenario.

Stop loss at the high of the third bar.

Take profit at the stop distance, that is, target 1R.

Set and forget. Equal position size, risk adjusted.

Could that be profitable on a large number of trades?

Let's say on daily bars, stock market index and forex majors, and oil and gold.

Would be interesting to run a proper portfolio level backtest.