The Rally Base Rally (RBR) pattern is a powerful supply and demand trading strategy that can help you identify potential turning points in the market and make profitable trades.
It is a technique used by many successful traders to capitalize on these turning points.
What is an RBR Pattern?
An RBR pattern is a three-phase pattern that consists of a rally, a base, and another rally.
The first rally is a sharp move in one direction, indicating strong demand.
The base is a period of consolidation, where the price moves sideways as the market digests the previous rally.
The second rally is another sharp move in the same direction as the first rally, indicating a continuation of the initial trend.
How to Trade an RBR Pattern
To trade an RBR pattern, you will need to identify the following:
The start of the first rally The end of the first rally and the start of the base The end of the base and the start of the second rally
Trading Strategy to Trade Rally Base Rally (RBR) Pattern
Steps to trade RBR pattern
Identify the first valid breakout of the base.
This is the point at which the price breaks out of the consolidation phase and begins the second rally. Wait for the retracement. After the breakout, the price will often retrace, or pull back, to a support level.
This is a good opportunity to enter a long trade. Enter a long trade. Place your stop-loss order at the low of the base.
This will limit your losses in case the market does not continue to rally. Place your stop-loss order at the low of the basing candle. This will further minimize your losses.
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