before getting a big selloff -- often a H/S top or 3 bump pattern emerges well before. In both cases, it requires THREE points to form the pattern.
Waiting for these set ups results in a huge drop -- with virtually no heat upon initial entry. In most cases the market is extended -- often 3 days into a rally or near a previous resistance area.
The goal is to capture those perfect moments -- and ignore the rest of the noise.