DESCRIPTION
Price trades in a wide range, the edges of which are defined by the presence of at least two high value nodes with few prominent nodes in between.HOW TO APPROACH
Approaching a Whipsaw pattern is similar to trading a range - the highest risk/reward opportunities lie in fading the edges of the range. It is strongly advisable to avoid initiating a position in the middle of the range, especially with 0DTE options, as theta decay and the unstable behavior of price can rapidly erode premiums.- Example 1
- Example 2
- Example 3
