The RAMBO pattern is one of the trading chart patterns I return to again and again — it’s built around fading amateur traders at extremes, and it works because the same crowd psychology plays out at every turning point in the market.
Use the RAMBO (potential ‘Reversal of AMateur Break Out’) pattern to fade Amateur activity at market extremes:
The RAMBO indicator with volume exhaustion and divergence is like printing money!!! Good work sir!!
jason t.
Got a great question from Mike M. on Friday about RAMBO patterns:
Hi Barry, Is the R associated with a RAMBO signal indicative of the direction the amateurs are going? Or the trend? For ex: today on the 1500 tick @ 9:51est, there was a red R below the UP amateur bar. Your products are fantastic and truly appreciate your videos. Thanks.
mike m.
I try to answer the question in the video above. For my money, the RAMBO patterns are pure gold – such a simple volume pattern and incredibly effective at showing you where the Amateurs are going wrong. The higher the time frame, the more prescient they are – so pay attention.
RAMBO patterns are one of two main amateur-trapping setups I look for – the other is the Killing Fields pattern, which catches the same retail crowd at a different point in the cycle.
Good luck with your Emini trading. The Gathering Pattern works well in combination with the RAMBO setup – see how to read breakouts before they happen with the Gathering.
