We have an outstanding Risk/Reward ratio here!
This is one of my favorite setups when the markets are contracting.
Currently I have an "DECENDING TRIANGLE" with a " WAVE" confluence.
There are pattern formations inside of pattern formations. Depending on your skill, understanding confluence as a trader becomes more and more important.
Note: The "DECENDING TRIANGLE" was sourced from a book called "Encyclopedia of Chart Patterns" second edition.
The "WOLFE WAVE" was sourced from http://www.investopedia.com