20 FAST Price Action Patterns

Finance-Focused Summary (Price Action / Trading)

Key themes

• The video covers 20 “fast price action patterns”—short-term chart/trading setups intended for objective entries/exits with tight stop-loss orders.
• Compared with slower, multi-candle “classic” chart patterns (e.g., head and shoulders, double tops/bottoms, triangles), these patterns typically form over only a few candles/bars and are designed to be easier to scan.
• Patterns can occur in any market and on any timeframe, and may provide:
  • Trade entries/exits
  • Potential reversal signals
  • Intermarket signals (a pattern in one market may suggest a reversal in another)

General framework / methodology

• Fast patterns = “setup + signal”
  • Setup: preparation/conditions
  • Signal: the trigger to enter
• Execution principles
  • Use patterns for objective entries/exits with tight stops
  • Combine with other tools; patterns are often more reliable at key support/resistance
• Gaps/spikes logic
  • Different gap types map to different trend phases (beginning / middle / end), helping guide expectations of continuation vs reversal

Risk management / caution notes

• Patterns are not guaranteed and can “trick you in dozens of ways.”
• The video emphasizes tight stops, but also acknowledges the risk of getting stopped out, including double stop loss in some setups.
• Some patterns require distinguishing similar-looking scenarios (e.g., runaway vs exhaustion gaps), implying the need for contextual confirmation.

Disclosures / disclaimers

• No explicit “not financial advice” or formal investing disclaimer is mentioned in the provided subtitles.

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Patterns and Actionable Logic Mentioned

Gap types (with trading implications)

1. Breakaway Gap (beginning of a trend)

   • Expectation: the most profitable gaps tend to occur early in a trend.
   • Trade approach:
     • Wait for “fading” after the gap (a small consolidation).
     • If price fails to close the gap, consider entering in the direction of the gap.
     • Stop concept: place the stop where the gap would be filled (a filled gap can imply price may move opposite).
   • Dave Landry pivot-based method (objective rules):
     • Pivot Low: candle/bar has a higher low to the left and right.
     • Pivot High: candle/bar has a lower high to the left and right.
     • Upward breakaway gap:
       • Wait for a pivot low
       • Enter: when price breaks above the right-side pivot candle
       • Stop: immediately below the pivot
       • Ensure the pivot occurs so the upward gap is not filled
     • Downward breakaway gap:
       • Wait for a pivot high
       • Enter: when price breaks below the right-side pivot candle
       • Stop: immediately above the pivot
       • Ensure the pivot occurs so the downward gap is not filled

2. Runaway Gap (middle of a strong trend)

   • Role: continuation signal; may help estimate how far a move could go (logical target).
   • Research cited: Thomas Bowski—runaway gaps occur at the middle of strong trending movements.
   • Trading note:
     • Can be handled “similarly” to pivot-based entries even though price is not near a reversal point.
   • Volatility note:
     • Volatility in bearish runaway moves tends to be higher than in bullish ones.

3. Exhaustion Gap (end of a trend)

   • How to differentiate from runaway:
     • Look at what happens after the gap.
     • If price fills what looked like a runaway gap, it may actually be exhaustion.
   • Exhaustion confirmation ideas mentioned:
     • Elliott wave count (spelled “aliot” in subtitles)
     • Exhaustive volume patterns
     • Common reversal divergence patterns
     • The creator references their own video: “16 ways of anticipating a price reversal”

4. Fair Value Gap / ICT-style (three-candle structure)

   • Bullish fair value gap: space between the upper shadow of candle 1 and the lower shadow of candle 3.
   • Bearish fair value gap: space between the lower shadow of candle 1 and the upper shadow of candle 3.
   • Concept:
     • “Fair value” implies price often returns, but it’s not guaranteed—price may continue without returning.
   • Clarification / disagreement mentioned:
     • ICT followers may interpret spikes/bars as:
       • ICT view: reaction to the fair value gap
       • Alternative view: reaction to a shift in volatility, often represented by the opening price of the spike/bar

5. Spike / High-volatility candle (wide range bar)

   • Distinction from gaps:
     • The “leap” occurs within one candle, not between candles.
   • Meaning depends on trend phase:
     • Beginning: similar meaning to breakaway gap
     • Middle: similar meaning to runaway gap
     • End: similar meaning to exhaustion gap
   • Function:
     • Can act as future support/resistance, often via the opening price

6. De Cat Bounce

   • Defined as: a failed rally after a significant decline
   • Requirements:
     • The decline must be obvious
     • Look for decreasing volume after the sharp decline
     • Then price returns to an edge of the gap / prior resistance level
   • ICT interpretation note:
     • The video suggests the move is more about support/resistance than “fair value gaps.”

7. Island Reversal

   • A combination of two gapping patterns
   • Variation mentioned:
     • If spikes hide gaps on lower timeframes, opposing spikes can form “island reversal” variations.

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Reversal / Bar-Pattern Families

1. One-bar reversal

   • Also called: reversal bar, climax, key reversal bar (names may be spelled inconsistently).
   • Rules:
     • Bearish one-bar reversal: price trades higher than the previous bar but closes below the previous close.
     • Bullish one-bar reversal: opposite logic.
   • Relationship to fractal concept:
     • Similar to the creator’s “fractal bar” (with momentum divergence across timeframes).

2. Pipe formation / “Pipe bottom/top” (Thomas Bowski)

   • Pipe bottom:
     • Two high-volatility candles
     • First candle closes low range; immediately followed by a candle closing high range
     • Interpreted as: price accelerating down into demand, then reacting up
   • Pipe top: opposite logic
   • Strength conditions:
     • Strongest when it stands out and occurs at strong support/resistance

3. Horn formation

   • Similar to pipe formation, but includes one middle candle (per Bowski’s description)

4. Inside bar

   • Definition: the current candle’s range is contained within the previous candle’s range.
   • Standalone meaning: “almost nothing.”
   • Trading logic (bidirectional stop approach):
     • Buy stop above inside bar high; stop-loss below inside bar low
     • Sell stop below inside bar low; stop-loss above inside bar high
   • Caution:
     • Can be stopped out in both directions if an outside bar follows immediately.

5. Hook reversal

   • Setup: series of candles/bars of the same bias
   • Signal:
     • An inside bar of opposite bias appears and stands out → reversal cue
   • Requirement:
     • The “change in bias” must stand out versus smoother preceding action

6. Naked bar upward reversal (variation of hook)

   • Conditions:
     • Price makes lower highs and lower lows
     • Then a bearish bar closes on the extreme lower range
   • Trigger:
     • Then an inside candle opens above the previous close → signals bullish reversal

7. Hikkake

   • Purpose: trap/failure of the standard inside-bar signal.
   • Example logic:
     • If price breaks above inside bar (standard long),
     • hikkake occurs when price fails to continue and breaks the inside bar low within three bars,
     • generating an opposite signal.
   • Framing emphasized: “trap”

8. Outside bar

   • Definition: wide range bar that encapsulates the prior period range.
   • Treated as emerging power; used near important levels.

9. Larry Williams “oops” pattern

   • Idea: exploit an opening gap using stop orders.
   • Rules:
     • If price gaps down:
       • Place buy stop at the low of the previous candle
       • Stop-loss at the open of the current candle
     • Must act quickly at/near the open of the second candle.

10. Shark (3-candle/3-bar)

    • Structure:
      • Two successive inside bars
      • The second inside bar is called apexx (spelling in subtitles)
    • Entry/trigger:
      • Trigger on breakout of the base (candle preceding the first inside bar)
      • Stop-loss below the base
    • Note:
      • Described as a compressed version of a pennant.
      • Subtitles include a slightly inconsistent “NR4 just like” reference.

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Low-Volatility Continuation Patterns

1. NR4

   • Definition:
     • The candle with the narrowest range among the last 4 candles (including current).
   • Trading: bidirectional breakout
     • Buy stop above NR4 high; stop below NR4 low
     • Sell stop below NR4 low; stop above NR4 high
   • Trade-off:
     • Narrower range → tighter stops
     • But → higher chance of being stopped out

2. NR7

   • Variation of NR4:
     • Narrowest range among the last 7 candles
   • Same bidirectional stop-order style as NR4
   • Note:
     • Can also lead to potential double stop loss if an outside candle appears right after.

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Intraday Pattern Mentioned

• Opening Range Breakout (ORB)
  • Common intraday pattern:
    • Trade breakout of the early session range
    • Usually the first 15 minutes (explicitly mentioned)
  • Several variations and confirmation methods are referenced, but not detailed.

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Extracted Instruments / Tickers / Assets

• No specific tickers, ETFs, sectors, commodities, bonds, FX pairs, or indices are mentioned in the provided subtitles.
• The discussion focuses on general price action patterns.

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Presenters / Sources Mentioned

• Dave Landry (pivots and breakaway gap trading approach)
• ICT (referenced multiple times; “followers”)
• Thomas Bowski (runaway gap research; pipe/pattern outline)
• Larry Williams (Larry Williams “oops” pattern)
• Video creator/narrator (referenced as Fractal FlowPro, e.g., “fractalflowpro” support/course mentions)