Appropriate time frame

Why is this important

• If you identify the pattern on too high a time frame, you can miss opportunities.
• If you identify the pattern on too low a time frame, you can get false signals.

Identify candle 1

1. Find the anchor point (bottom of left shoulder, bottom of candle body (not wick)), extend left. 1st candle body you hit is candle 1.
2. Find the end by extending the anchor point through the bottom of the right shoulder, to the outside of the shoulder candle body. This is the last bar.

Assess the time frame

On the 15 minute or 1 hour charts, the pattern length should be 30-120 candles (inclusive).

If there are too few, go down a time frame. If there are too many go up a time frame. Then re-asses.

On the 4 hour chart There should be 30-180 candles.

On the Daily chart - there should be between 30-210 candles.

Minimum 15 minutes. Maximum weekly.