So much of trading success is a function of pattern recognition, and so
many trading patterns boil down to three basic setups:
1) Reversal Trades - The market moves to or just beyond the edges of a
trading range (a consolidation area, the value area from the prior day),
cannot sustain buying/selling interest, and falls back into that range.
The initial target for such a trade will generally be the midpoint of
that range (which may also be the pivot level from the previous day or
week); a reversa