5 BAR REVERSAL PATTERN

 Works in All Segments – Currency, F&O, Cash & MCX

 Pattern of 5 Bars/Candles
 All Time frame from 3 mins to Monthly Charts – Intraday & Positional
 Intraday – “ 5mins, 10, 15, 30 mins & 60mins “
 Positional – 4 hours, Daily, Weekly, Monthly
 We Need to find this pattern only after a Prolonged Downtrend/Uptrend

BUY SETUP:

 After a downtrend – Find 3 candles that make higher highs

( don’t worry about open, low, close & candle colour does not matter)
 After 3 higher high candles – Find 2 candles that make lower lows
( don’t worry about open, low, close & candle colour does not matter)
 All these 5 candles must be continuous in succession.

SELL SETUP:

 After a uptrend – Find 3 candles that make lower lows

 After 3 lower low candles – Find 2 candles that make higher highs
 All these 5 candles must be continuous in succession

THE 3 CANDLES (HIGHER HIGHS/LOWER LOWS), AND THE FOLLOWING 2 CANDLES(LOWER

LOW/HIGHER HIGH) ARE INDEPENDENT OF EACH OTHER. i.e. - do not consider the 3 HH/LL
candles(values) for identifying 2 LL/HH.

ENTRY & STOP LOSS :

 Buy above the Highest high – Lowest low will be S/L
 Sell below the Lowest low – Highest high will be S/L

VALIDITY:

 HH or LL must be broken with-in the next 5 candles or else the setup is invalid.
 Suppose we find a pattern (3HH2LL/3ll2HH) and we did not get entry(trigger
buy/sell), if we find another pattern (3HH2LL/3ll2HH), we ignore the 1st setup and
consider the 2nd – latest setup.

TARGETS:

 Support (or) Resistances at recent swing lows (or) highs

VARIATIONS:

 BUY - 2 Lower lows can be double bottom with same low value
(or) 2 highs can also be same
 SELL - 2 Higher highs can be double top with same high value
(or) 2 lows can also be same