You can apply this system on any time frames on the practice. This is the case when Forex traders have the opportunity to go long on the Double Bottom chart pattern.
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The advantage of such indicator is that it's doing all the hard work for you. It scans many pairs as you want for 4 different timeframes M30 to Daily. Would do the tedious work on your own? Just get alerted when it's about to happen. The Indicator doesn't repaint and once attached to the chart it displays previous patterns:.
This tool indicates which currency is the strongest top of the dasboard and which currency is the weakest bottom of the dashboard. This tool is used to filter signals For example we sell on M and sometimes we buy on W.
Refer to this post to see examples [ Here ]. The second profit target option is by multiplying your target profit point to 1. This picture below described the forex trading system. The price penetrated the number 2 point, it means that the down trend is over and ready to move back up. You can put your long trade with a buy stop order slightly on the above of the number 2 point.
You may put 70 pips and 55 pips as a reasonable target profit, and your stop-loss below the number 3. Again, You can see from the picture above that the price action move up about 92 pips.
Yes it went down but it never touched your stop-loss. By the way the gold-colored zigzag lines is zigzag fractals indicator and the blue and red dots are fractals. Yes… the down trend is also making pattern. Go on open your forex trading platform and check them out. If you read the posts and watch the chart patterns you will always see the chart patterns on them.
An M Pattern is the way the market is producing a Double Top pattern, creating a resistance zone on the chart. The price creates two tops on the same level and starts a decrease. The pattern appears after a bullish price trend and can reverse the tendency. A short trading opportunity opens with the Double Top pattern. This is a Double Top Chart example — the M chart pattern. The two tops of the M pattern are marked with the black spots on the chart.
In the time of the second bounce from the yellow resistance area, we get a Hanging Man candle pattern, which has reversal functions. This confirms that the price will probably start a decrease. See that the second bounce from the resistance level leads to a price drop, which could be traded short. At the same time, there is a second opportunity on the chart.
The level indicating the bottom between the two tops is called a Double Top Neck Line. If the price action breaks the Neck Line, then we can pursue a further target downwards. The minimum expected move after a Double Top Breakout would then be equal to the distance between the resistance level of the Double Top and the bottom between the two tops.
As you see, the price action completes this move afterward. The Double Bottom pattern appears after bearish trends and is known to reverse the price action. In this relation, the Double Bottom chat pattern often leads to increase in the price action. When a bullish price bounce appears after the creation of the second bottom, this is likely to bring the price increase.
This is the case when Forex traders have the opportunity to go long on the Double Bottom chart pattern. As you see, the W formation is the same as the M chart pattern, but upside down.