San Ku Reversal Pattern

San-ku patterns are anticipatory trend reversal signals. Put differently, they don't signal an accurate place of reversal; instead, they show that a U-turn is expected to happen in the close future. They're recognized by 3 breaks inside a strong trend.

    *  Entry: verifying the reversal pattern - This pattern functions on the assumption that prices are expected to recede after abrupt moves since traders are apt to begin taking profits. Consequently, this pattern is most beneficial employed with other exhaustion signals. Thusly, seek extremes being arrived at in indicators much like the RSI (relative strength index), MACD (moving average convergence divergence) crossovers, and additional such signals. It's as well of value to search volume patterns that indicate exhaustion.

    * Exit: determining the target and stop - In most cases, while employing this pattern, you'll discover a price reversal not long after the 3rd breach happens. Nonetheless, whenever there are any breakouts on elevated volume after the final gap, then the pattern is invalid, and you ought get out rapidly, but prudently.