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3 Day Cycle Deep Dive
Pips2profit
Cameron Benson Step 1: Categorize the trade
=
a. 3 Days of Previous days
high/low (AKA Day 1,2,3 5 Opening Range (Monday)
Breakout traders) Initial Balance (Tuesday)
Inside Day cc. Wednesday (Day 3)
First Red Day
First Green Day
Used in combination
with previous 2
categories in order
to find larger moves
in the market
Day 1=false break
day
Day 2=Trend
day/Unidirectional
moves
Day 3= Reversal OR
Parabolic/Capitulati
on style trend trades What is the 3 Day Cycle?
Recurring Market Cycle, that when identified, can be the groundwork of a Trade Setup.
Consists of 3 days.
_Begins with a fale break at the current weeks hightow
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| i, Finding Day 1
False Break Above Or Below A Previous Days High/Low AT THE HIGH OR LOW OF THE WEEK.
Attributes:
1. Breaks Below/Above Previous Days High or Low at the high of the week, and the day closes back inside
of previous days range.
‘2 Sub Variation: Breaks through arevious days level and days closes above/below thet level. The following day,
price comes back inside ofthe the range from 2 days ago and closes.
Can become a First Green Day or First Red Day (Signal for following day).
Day 3 sometimes turns into Day 1 at the close of the day. Breakout that fails following day
Day 2 3dce Failed
Breakout High
of week Day 1
Example of
breakout failing on
the same day, as
well as Day 3
Turning into a Day
1
Day 3
Failed Breakout
High of week
Restart Cycle
Day 1 3 Day Cycle Day 2 of 3 Day Cycle
Attributes:
1. Continuation in direction of false break.
2. Canturn into.
3. FOO
[Link]
© Inside Day
4
Trend Day
Areas of Interest:
1. HoD/LOD
2. HOS/LOS
3. OR/IB (Was there a false break?) (Act as
support/resistance)
4, Low Bear/High Bull (Support/Resistance)
Day 2 Trade Setups:
© Long/Short Squeeze
Parabolic Trend Trade
HOD/LOD Trade
HOS/LOS Trade
LHF Continuation (Trend Trade)
Method:
1. Support/Resistance References:
a. Low Bear/High Bull
b. Previous Days High/Low
. HOD/LOD
Measure 3 Levels of rise/fall from
Low/High of day for potential strike zone.
Use Support/Resistance References as
additional confluence Attributes:
Last Day of the cycle
Can a lot of times turn into day 1
either on the current day or the
next day.
Either a blow off day (Direction
of trend) or a reversal day.
Trade Setups:
1. Parabolic/Capitulation Trend
2. Reversal HOW/LOW
3. LHF Continuation (Trend Trade)
Areas of Interest:
1. Low/High of week
2. Previous Days High/Low
(Support/Resistance/Trapped
Volume)
High/Low Of Day
High Bull/Low Bear (Support
Resistance
5. OR/IB Becomes
ey
Followin
g Day |
L
|
|
Day 3
Reversal
Day 3
Turns to
- Day 1 : Watch for resets! FULL CYCLE EXAMPLES toys
