| Toby Crabel's patterns are used to identify potential price breakouts and trend reversals in financial markets. They were developed by Toby Crabel, a successful trader and author of the book "Day Trading With Short Term Price Patterns and Opening Range Breakout." The patterns are based on measuring an asset's daily range, which is the difference between the high and low prices of the day. Crabel observed that certain price movements tend to occur frequently within the daily range of an asset, and he developed a set of patterns to identify these movements. Some key patterns include the Narrow Range, the Wide Spread, the Inside Day, NR4, and NR7. Traders who use Toby Crabel's approaches typically look for breakouts from the daily range, either to the upside or downside. |
