3 Day Cycle: Day 2

Pips2Profit
Cameron Benson
 Day 2: Scenarios
Scenario What to look for

Day 1 was a FRD/FGD Trend Trade on Day 2 (Buy low or sell high)

Trend Trade on Day 2 (looking for lower high/or

Day 1 was a failed breakout at HOW/LOW and higher low for a sell high or buy low opportunity.
broke structure.

Day 2 TRAP. It is a trend trade in the direction of the

“failed breakout”.
FBO HOW - In reality this was a higher higher for a
Day 1 was a failed breakout at HOW or LOW. (Trap)
long trade the following day.
FBO LOW - In reality this was a lower low for a
short trend trade the following day.
 Day 1: FRD or FGD
1. Failed breakout at
the current LOW =
Day 1 3 day cycle.
2. First Green Day at
LOW.
3. Following day
looking for LOS, LOD
trend trades in the
long direction.

VERY IMPORTANT:
The pattern and setup
can occur in any
session, NOT JUST
NEW YORK!

Above Image depicts Day 2 3 Day Cycle (3DC) Parabolic trade in the GAP TIME, and a trend trade in the 1st Hour of NY
Session. This was in combination with the FGD (Buy Low) setup.
 Day 1: Break In Structure
When everything
comes together and
you have multiple
“confluences”, these
turn into the best
trades.

Confluences:
1. Multiple days
of breakouts
down.
2. Friday was a
BIS AND a
FGD. Friday
made a
higher high.
3. Monday was
Day 2 3 day
cycle looking
for a buy low. Above image depicts a FGD, BIS and Day 2 combination, leading into the parabolic NY Session trade.
 Day 1 Day 2 Trend Trade (No FGD/FRD)
1. Looking for markets
with large dumps or
pumps over the
course of 2-3 Days.
2. Looking for a Day 1
that has broke out
and failed (Day 1
3DC).
3. On Day 2 of 3DC,
looking for a buy
low or sell high.
(HOD/LOD,
HOS,LOS).
a. Trend Trades
trading away
from the failed
breakout. Above image shows how you can still look for trend trades based on the 3 day cycle on day 2 in the absence of a signal day.
Will occur due to a larger
template that is in play. Day 1 TRAPS
Structure is VERY
important.

Always pay attention to

what day of the weeks it
is in order not to get
caught in a weekly
template style trade
(opening range
breakout/failure) when
you are still searching for
the 3DC Setup!

BEWARE of markets that

continuously keep
forming a day 1 day after
day. This could be an
early warning sign of
future reversal! Be
PATIENT!
Previous slide continued: Same Chart the following week.
1. The market had
been going down
for an extended
period of time
(dumping) and
consolidated for a
week.
2. Peak high and low.
3. Inside Day on
Monday (a lot of
times this is a pause
day for large
expansion the
following day).
4. LOD Short Squeeze
in Asia.
5. LOS Parabolic Trend
Trade in London
back through the
high of the previous
week.
Details Matter:

Multiple Days of
Breakouts to the upside

Failed Breakout at HOW

Lower Low on 15M and

1H

First Red Day:

1. Pump Day
2. Attempt to go
above previous
days high (Failed
Breakout)
3. Close Below the
opening price for
the day.
Entry: Do NOT Complicate the entry
Step 1:
Higher timeframe setup
a. FRD
b. Day 2 3dc
These are SELL high opportunities
c. HOD
d. HOS

Step 2:
Timing
1. In your sessions timing window
2. Either a 1st hour 2nd hour or 3rd
hour trade
3. No News left on the calendar

Step 3:
Entry Criteria
4. 1M chart made a high
5. 1M chart BIS to the downside
6. 3 pushes back into high
7. M/Engulfment/Entry
1M Chart Gold Jan 17th 2024