Trading Patterns That Repeat

Last week's price action of the stock market gave a textbook example of one of my favorite and fundamental trading patterns; that of the false breakout reversal.

On the longer term Daily timeframe both the Nasdaq and S&P 500 setup this pattern with the February 24, 2022 spike to break but then recapture the January 24, 2022 low.

We do not have to wait to see how this might play out. My trade on Waste Management WM was based on this exact pattern and as of today it has reached the 3-to-1 target. It is fascinating and very profitable to accept and recognize that these patterns can and do appear on all timeframes and on all instruments.