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
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.
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.
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.
OOPS Trading Strategy. Most essential pattern by Inna Rosputnia
Wishing you a great week!
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