Bucket Trading

What is BUCKET PATTERN? if this is your question..well, let me tell you that bucket pattern is one of the best pattern that i have ever met (of course after Candlestick pattern ^^).

You can trade very well just based on this BUCKET PATTERN, i am not sure who was the first to invent this pattern but i knew this pattern from BRV ( a trader from NY ) in his thread in ForexFactory NO BRAINER.

Just to cut this short, Bucket pattern occurred after a trend, consolidation and counter trend. Well, i am not good at words so here are some of the examples of bucket pattern and how to use it.

First, what you need to do is to spot the pattern of trend, consolidation and counter trend (downtrend, consolidation , uptrend OR uptrend, consolidation, downtrend) and marked the potential turning point.
( the top of the consolidation as the potential Support/ Resistence YELLOW DOTTED LINE)



As you can see in this chart, a strong rising trendline can also be drawn just to add a clearer view on where most probably the market will turned. It looks messy & hard but seriously, it is not...this is all i have in the chart...



What we do next is to wait for Candlestick Signal (VERY VERY IMPORTANT STEP) at the line, it can be either Yellow line ( bucket pattern) , RED LINE ( trendline) or even both.



ONCE ITS CONFIRMED, all you need to do is to OPEN A POSITION, and see what will happen. Obviously not every trade is going to be profitable but by knowing this extra portion you will add a significant winning percentage on your portfolio...



Here are some of the bucket pattern and hopefully can make things clearer for you..


















Well...BUCKET pattern can be found almost in everytime frame and every single day.

HERE IS THE BAD NEWS, NOT ALL BUCKET PATTERN IS VALID, all i can say is always trade bucket by viewing the historical price action at that particular level, the more it get hits and reverse the stronger that point will be, but stronger doesnt mean that it will never being broken, all support and resistence will be broken one day. So, trade this pattern effectively...!!

ALL THE BEST...!! AND HAPPY TRADING...!!

THANKS TO BRV FOR HIS EDUCATION...!!