The highest probability setup I know
What makes a good setup is an interesting topic. IMO it doesnt come down to this pattern or that setup, it is a function of how price is behaving, viewed as a totality.
When price starts to break down or up, BIAS steps in to make us naturally consider prices compared to where they were, and we think about waiting for a pullback before getting long (or vice versa for short)
The thing is, statistically most of the really big moves come from already overbought or oversold conditions.
The setup is
1) Price is embedded in the lower bollinger band (for sells)
2) Either an INSIDE PERIOD, OR A SHOOTING STAR
Setup complete. Sell 1 tick below the low, stop 1 tick above the high.
Look at the Euro price action from Dec 09 – June 10. 12 trades, 11 winners (and the only loss wasnt a complete loss)
This is typical of overextended moves. I can show you EXAMPLE AFTER EXAMPLE of times when setups in one direction get UBER reliable. Like long setups in $spx for the last 2 months.
Now look at Silver. Tell me if it looks too late to get on board. ANY inside day, or shooting star candle is a >85% probability as long as price remains embedded in that lower bollinger.