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Mechanical Swing Trading Patterns
Washout (WO)
Oversold on two timeframes. Then a hint of life.
BiasBullish reversal (with bearish failure mode)
Timeframe5–10 day
Severely oversold long-term and short-term (Williams %R below -80), but the most recent day shows a higher low and a higher close. Buy the breakout. If the pattern fails, it inverts into a massive short signal — the same setup pays both ways.
Go deeper on Washout (WO) with annotated chart examples, decision rules, and failure modes.
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