The V shaped pattern is no "Holy Grail" of trading

However, it does historically show a pattern that appears over and over again

As the name implies it comes in the shape of a V shape as it forms and is displayed on the charts

As markets can go up and down in value we also have a pattern that appears in the form of an upside down V or an inverted V, I'll refer to this as IV for short

This can be used as a scalping strategy and is best combined with a short timeframe such as the 1 min chart

In my opinion, it works best on indices and stocks should be traded using the 4 stock pattern approach

The strategy is a conservative approach and essentially your letting the bigger moves happen without committing and then looking to grab a few points on the recovery of the initial move

✅ The benefits of this is the limitation of your risk and it is a simple strategy to implement

❌ The downside is that it can be inconsistent with profits on a daily basis and if news or economic data comes out,

then this will disregard and distort any shaped pattern and react to the news accordingly

The strategy is one that works best in a stable market where supply and demand are the two main factors,

this is the basics of trading and works when support and resistance are respected

*At the time of writing this piece for this course the markets are going through a volatile correction,

there is fear of inflation, 10 Year Treasury Note is on the rise and all economies are overheating as it's being pumped with conflicting data

I do encourage having multiple strategies available to you to profit from trading,

Knowing which gun to bring to a shootout is key