Today I want to explain one of the most accurate trading strategies – Oops. Legendary trader Larry Williams developed this pattern. Of course, nothing works 100% correctly in the market. But 70 – 80% is the high accuracy. Indeed, a lot depends on how you manage your money. Therefore, using the same strategy, traders get different results. But we will talk about money management later.

What is behind the Oops pattern? Trading strategy basics

Let’s focus now on the Oops trading strategy, which made me good returns on managed trading accounts. Why oops? – Well, I didn’t name it. But I guess all because this strategy is based on how big boys use crowd emotions and psychology to trap them. Usually, it happens as a result of some ‘noise news.’ Hence, if the market opens considerably lower or higher than yesterday’s range, it indicates retailers’ panic or greed accordingly.
This provides an excellent opportunity for big players to use the retailers’ emotions against them by placing a contrarian trade and earning profits. In a few words, it’s a gap trading strategy, and the gap is the result of emotional actions.
Soon, retailers realize they made a mistake… Oops! As with most of the strategies I use, this one works for swing traders. I am not a big fan of day trading.

It is effortless to identify the Oops pattern in the chart:

  • The daily candle opens below the previous day’s low.
  • Or when the daily candle opens above the last trading day’s high.
opps trading strategy pattern

Here is how the Oops pattern works for a buy (opposite is valid for sell)

First of all, I would like to inform you that this pattern works for stocks and commodities. Next, we look for instruments that have been in a downtrend for at least a few days. In other words, the oops strategy gives the best accuracy in the accumulation phase when big players try to wash out retailers. Sometimes oops pattern happened during Wyckoff Spring. There is no need to look for an oops if the market is bouncing in the channel. It will not work simply.

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During the last stage of the downtrend, the market needs to gap down way below yesterday’s low. This is the next stage of oops formation. Then, as the market revalues news, the price starts rising and crosses yesterday’s low. This is the buy signal, and a long trade should be initiated here. The stop-loss is below the low of the same day.

In conclusion

Oops is a classic Larry William’s trading pattern. It serves to identify market reversals caused by excessive emotions. Of course, this pattern has been modified by many traders. Still, it is one of the most accurate trading strategies.

OOPS Trading Strategy. Most essential pattern by Inna Rosputnia

Wishing you a great week!

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