This is a guest post by Mike Semlitsch who is a trader and software developer with a proven track record of helping novice and intermediate traders succeed in trading the financial markets. Driven by a passion to help others, he takes pride in creating and providing the best trading systems and indicators possible. As the owner of the website, he specializes in developing trading systems and tools that allow users to trade in harmony with the actions of the smart money.

If you are searching for a reliable day trading pattern then this article is for you!

By mastering this day trading pattern, you can become a consistent profitable day trader. This pattern will occur in every liquid market like Forex, Stock Indices, Commodities forever and it happens many times per month:

The Same Pattern: Long Term And Short Term

The screenshot above shows the day trading pattern based on the one hour (H1) time frame. The duration of this pattern from the beginning to the end on the one hour time frame is just a few days.

While it isn’t very noticeable at first, the pattern of the chart is mirroring that of a “Pump and Dump” pattern. You may notice that this is the same pattern that we were able to observe from Crypto Currency markets:

This “Pump and Dump” pattern that we have been able to observe over the course of the last few months has produced a lot of hype and excitement in the media and on numerous social networks.

While the type of trading you do during day trading isn’t at this scale, the patterns that we observe are the exact same! Because of this, these trading patterns can successfully be used while day trading.

When looking at these smaller scaled patterns, you’ll notice that they occur every month over the course of small, couple day periods, in markets such as Forex, Crypto Currencies, and Futures.

Using This Pattern For Your Day Trading Is Like Tapping Into A Gold Mine!

This pattern equals the value of gold!

This exact pattern is one rare thing you can bank on in the financial markets and due to the fact that it happens numerous times each month, you can generate money from it regularly.

Hence, knowing this pattern equals the value of gold.

Now, I will explain all you require for the thorough understanding of this day trading technique.

Steps For Learning This Profitable Day Trading Pattern!

Step 1: How You Can Easily Spot The Pattern?

Step 2: Numerous Real Chart Examples

Step 3: The Setup Happens In Every Direction!

Step 4: Conclusion

Let’s get started 🙂

Step 1: How You Can Easily Spot The Pattern?

Apart from the high profit potential of this pattern, the huge benefit is its easy detection. A price action based on the H1 timing is the starting point. This is the point where you can plot an ascending trend line and also a steeper ascending trend line.

A lot of space has been created in between the real price and the smaller steep ascending trend line:

The space between is the hypothetical profit potential which this setup can yield. Hence, each setup you choose should preferably have a big free space.

The dotted lines which are vertical represent the 0 GMT. This implies that each trading day closes at the dotted line.

For a perfect setup, the close of the trading day should be near the day’s high:

You should expect a proportional tight price range during Asian sessions:

Most times, once the Asian session is over, the tight price range will have an upside break. Immediately after this upside break, a sharp reversal downwards occurs which breaks through the lower boundary of the tight range.

Your entry signal will be the break of that lower boundary:

The screenshot below displays the setup having the exact price action that occurred days back on the EURUSD H1:

Can you see the intensely strong movement downwards after the entry signal?

Step 2: Numerous Real Chart Examples

Certainly some more examples would aid in learning this day trading pattern 🙂

Example 1:

Example 2:

Example 3:

A Live Trade In Our Telegram Group That Occurred Some Days Ago:

This exact pattern also occurred some days ago on the USDJPY H1. I mentioned this pattern in my telegram groups just some hours before the entry signal happened.

And with the aid of my V-Power Expert Advisor which was specifically programmed to notify and automatically place trades upon such signals, I entered in real time:

Below is the result of the setup on USDJPY:

Step 3: The Setup Happens In Every Direction!

Just as you likely thought, this method also works as buy setups.

Example 1: Some Days Ago A Long Setup On Gold

Example 2: Also Some Days Ago A Long Setup On EURCHF

Step 4: Conclusion

In order to avoid years of pain and struggle while learning day trading, please do yourself the favor of investing a few hours. Examine your charts on the one hour (H1) timeframe and be confident that the key to profitable trading is in your hands.

Congrats! You just learned successful and profitable day trading.


Based on this answer, I have not expounded the reason for this pattern’s occurrence. My website has a thorough explanation of how smart money operates and the reason why it must operate that way.

And the “it must operate that way” is why this pattern will happen forever in every liquid market.

This article explains one of the multiple ways to trade successfully with the V-Power Day Trading System. V-Power can give alerts and can even do automated entries. You can test a free version on two Forex pairs for an unlimited time with all features.

You can follow Mike Semlitsch on Twitter here. 

***All content, opinions, and commentary in this guest post is intended for general information and educational purposes only, NOT INVESTMENT ADVICE.