This is a bullish reversal pattern - using the overnight liquidity levels for where buyers may want to step in.
Not all liquidity levels hold to the tick. And catching a falling knife gets traders' accounts killed. However, if we wait for a reversal signal/pattern at a known level where Buyers are sat. We can usually get a good entry.
The pattern happens across all time frames but for those looking to keep risk to a minimum you want to use the smallest time frame possible without being subject to too much noise.
Only you will be able to tell your risk tolerance.
Not all liquidity levels hold to the tick. And catching a falling knife gets traders' accounts killed. However, if we wait for a reversal signal/pattern at a known level where Buyers are sat. We can usually get a good entry.
The pattern happens across all time frames but for those looking to keep risk to a minimum you want to use the smallest time frame possible without being subject to too much noise.
Only you will be able to tell your risk tolerance.
