3 bar surges are common in all timeframes. Daily and weekly are the best to
trade but the concepts remain the same in all timeframes.
Day 1 is the day of the reversal. Ideally, we see a reversal
pattern at support and a valid trade
type such as a pullback in trend. A starter position can be taken on day 1.
Day 2 is the day of the confirmation and should consist of a strong move
back higher with a close near the highs of the session. Often a day 2 opens
slightly higher and pokes around the high of day 1 or gap fill and then makes a
low in the first 15-30mins before accelerating higher. Positions can be added
to on day 2.
Day 3 is often a day of rest, even a reversal back down. Many traders scale down positions into any strength. Day 3 is not a good day to buy, especially if new highs fail and drop back into day 2's range.
