Using the current $DOGE plan as an example, let’s examine the deviation at the bottom of the range. According to my system, I’m waiting for confirmation of a return to the range to open a long position.

GgSR3EXXYAAySn9.png

However, if we look at the formation created within the deviation, we can spot a triangle pattern. Therefore, for additional confirmation, I would like to see a retest of the triangle and another return to the range, which would invalidate the fakeout movement.

GgSSl6_XAAARuvK.png

Apart from the triangle, this could also be interpreted as another range on the LTF with a potential deviation at the top and a subsequent move downward. Thus, another confirmation for a long trade would be the breakout of this LTF range.

GgSTBr1XUAAFWlF.png

To summarize, before opening a position, I rely on a combination of several concepts to decide on the next steps.