Why Phase 3 is the buyMicro XRP FuturesCME:MXP1!JasonHydeThesis: price has been trending up, then consolidates inside a down-sloping/neutral channel (the white rails). Each touch into the lower rail tests and absorbs liquidity. By the third touch (“Phase 3”) the supply sitting along that rail is thin; when price holds/reclaims that rail, the path of least resistance flips up and we often see a push to a higher high. What the pattern is showing Impulse → Channel: After an advance, price pulls back in an orderly channel (a bull flag/descending channel). Touch 1 & 2: First two taps validate the rail and define the slope. Liquidity resting on that line gets partially absorbed each time. Phase 3 (now): The third tap tags the same demand rail near $2.92 and rejects. Shorts leaning on that line are vulnerable; a reclaim sparks stop-outs + breakout flow. Structure shift: Pushing away from the lower rail typically breaks the most recent lower-high inside the channel, turning structure back to HH/HL and opening the door to a run toward/through the upper rail. Why this entry is attractive Validated level: You’re not guessing—the lower rail is proven by multiple touches. Asymmetric risk: Risk is defined just below Phase-3 low / below the rail; upside is to the upper rail first, then new highs if the channel breaks. Liquidity mechanics: Each test removes sellers; the third test often doesn’t have the inventory to push through, so the bounce has fuel (short covering + breakout buyers). Volatility-aware: In my system the rail slope is normalized (ATR-scaled around your 16.6 “feel”), so the same “reversal touch” behavior shows up across symbols and sessions. How I’m thinking about it Trigger: Either (a) the Phase-3 bounce off the rail holding above ~$2.92, or (b) a close back above the most recent intra-channel lower-high (conservative). Invalidation: A decisive close below the rail/Phase-3 low (the idea is wrong if demand doesn’t defend the level). Targets: T1: Upper rail of the channel. T2: Prior swing high / new HH if the upper rail breaks (measured-move of the channel width is a common extension). Bottom line: Phase 3 is “go” because it’s the third test of a validated demand rail inside a bullish context. That combination (validated level + thinning supply + structure shift) consistently produces the higher-high leg this setup is built to catch. (Not financial advice. I’m trading the pattern as described with clear invalidation below the rail.)