Alright guys, here's a good pattern for you to learn, I call it the waterfall pattern. Basically a waterfall is exactly what it sounds like, it is a hard sell off on good volume and you look for a bounce. Generally these plays are better for quick scalps, but they can also reverse into a longer trend.
On this chart, CF, I bought in around 11:45 as those two bottoming tails touched the S3 line. A lot of times, you'll see a quick reversal and explosive move back upwards, but it just depends on the setup. This one gave a quick move, then slowly paced its way upwards all day.
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