How to Trade Bullish Reversal Pattern? (Example of $AAPL…)

I have always classified myself as a Price Action trader. In simple words, it means to follow the price and its levels. I do not pay much attention to technical indicators and studies. The A-B-C Trading pattern identified below is what I have had most success with in my trading career. Most of us like to buy at the bottom, but no body knows where the bottom is. Therefore to keep interpretation simple, I will lay out a bullish set up that can help you minimize cases of getting in too soon.

How to visualize the A-B-C Trading pattern: This illustration shows what I am looking for in general before I enter a long position.

This shape has three main points.

Swing A: The lowest point in a current trend (Swing Low).

Swing B: The end of the bounce from point A. Always good to observe for bullish type candles (Hammers, Green Trend bars, Long bottom wicks etc.) here that can signal some sort of buying pressure.

Swing C: A Higher Low point and a failed attempt to continue the bearish trend. For example bearish trend bars being met with bullish engulfing candles, or simple long bottom wicks.

Where to initiate Long and put a Stop-Loss

• Initiate Long entry as the market breaks out of Swing B. A close of a…