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C$%C re&#ired disclaimer: %rading %rading foreign exchange on margin carries a high hi gh level of ris!" and may not e s#itale for all investors. %he high degree of leverage can wor! against yo# as well as for yo#. 'efore deciding to invest in foreign exchange yo# sho#ld caref#lly consider yo#r investment o(ectives" level of experience" and ris! appetite. %he possiility exists th at yo# co#ld s#stain a loss of some or all of yo#r initial investment and therefore yo# sho#l d not invest money that yo# cannot afford to lose. C$%C C$%C )*+, )*+, -.-1 -.-1 /ypoth /ypotheti etical cal perfor performan mance ce res res#lts #lts have have many many inheren inherentt limitat limitation ions. s. No representation is eing made that any acco#nt will or is li!ely to achieve profits or losses similar to thos those e show shown. n. n fact" fact" ther there e are are fre& fre&#e #ent ntly ly sha sharp rp diff differ eren ence cess etw etwee een n hypo hypothe theti tica call performance res#lts and the act#al res#lts s#se&#ently achieved y any partic#lar trading program. ne of the limitations of hypothetical performance res#lts is that they are generally prepar prepared ed with with the enefi enefitt of hindsi hindsight ght.. n additio addition" n" hypoth hypothetic etical al tradin trading g does does not involv involve e financial ris!. ariales s#ch as the aility to adhere to a partic#lar trading program in spite of trading losses as well as maintaining ade&#ate li&#idity are material points which can adversely affect act#al real trading res#lts.
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Content Introduction
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Overview
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Section 1 – Trends %he 4yth f 4ar!et %rend
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/ow /ow %o %o nc ncre reas ase e %he %he Prof Profit ita ail ilit ity y f f Any Any 6yste ystem m
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/ow %o 8etermine %he %rend
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9hat s A %rend 8rawdown
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Protecting Against olatility
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,xercise
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%he *ltimate 6ol#tion
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Section 2 – Patterns /ow %o 8raw %rend +ines
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,xampl ,xamples: es:
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=%riangles" =%riangles" $lags" 9edges... 9edges...>>
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/ow %o %rade Chart Patterns
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,xercise
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)ecogni?ing Chart Patterns
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Introduction %his report was written to ill#minate the top mis#nderstood $orex areas and help $orex traders s#cceed and stay profitale. %he information is presented in a readale way for eginners as well as advanced traders that want to t#ne #p their trading approach and increase their s#ccess rate. @o# will learn y stressing the common mista!es and often revealing ovio#s #t #nderestimated trading techni&#es.
4ost traders start y as!ing the correct &#estion: =9hats the c#rrent mar!et trendB>" trendB>" #t then most of them fail to determine the trend correctly and almost all traders miss the next important &#estion: =/ow reliale is the c#rrent trendB>
f yo# dont ta!e the trend into acco#nt" yo# will often e tric!ed into placing low winningproaility trades. %rend %rend is yo#r friend. 'y following the trend it can only e etter. etter. '#t yo# have to disting#ish etween the real trend trend and very tempting price action that wants to play with yo#r emotions.
@o# will also also #nderstand the asic principles ehind chart patterns" how to draw strong trend lines" how to recogni?e the patterns pa tterns and how to trade them. 9e always !eep trading simple and therefore we foc#s only on the most reliale chart patterns. 9ith the following !nowledge" yo# will e ale to spot the patterns leading to explosive price movements and then trade t rade profitaly with it.
,n(oy
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Overview 9e will cover two different #t close areas that all s#ccessf#l traders have mastered: Section 1 – Trends •
%he =#y and hold> strategy is dead today to day.. 8o mar!et trends existB
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%he common approach in all trend following systems
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%r#e story: a simple trading system that made a fort#ne for one famo#s trader and his investors
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ne =tric!> that will ma!e the difference etween losing Dor rea!ing rea!ing evenE and winning
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%he common mista!e: seemingly =strong #ptrend> is followed y a hard fall
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/ow to identify the real trend #sing p#re price action
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9hich trend is more reliale and how to comp#te the trend reliaility
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Another common mista!e: 6top +oss not reflecting the c#rrent mar!et volatility
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9hich mar!ets to avoid and how reliale trends increase s#ccess rate
Section 2 – Patterns •
%he g#idelines to drawing good trend lines. 'rea!ing thro#gh a strong trend line res#lts in a massive and profitale move.
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6everal examples of good and ad trend t rend lines and the common mista!es =%ime oms> constr#cted y trend lines %he definite strategy to enter an order" order" place yo#r 6top +oss and ta!ing a profit
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*sing the =Pro(ection 4ethod> 4etho d> to determine the =%a!e =%a!e Profit> Point
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ntelligent software that can recogni?e strong trend lines and chart patterns 5
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Section 1 – Trends The myth of market trend
%rend following has een the est style of o f trading for the past 0 years. %here were times when traders made fort#nes (#st y following the trend or following a simple system ased on two moving averages crossover. crossover. %he =#y and hold> strategy that was so pop#lar y traders ao#t a decade ago is dead today. today.
+oo! at the ,*)F*68 chart from Gan#ary 2001 #ntil G#ly 200H. %he #ptrend was pretty strong most of the time. t ime. f yo# p#shed the ='#y> #tton" yo# wo#ld win most of the time even with a poor trading system. %he consistent rise of the e#ro over the dollar was giving yo# a clear sense of the overall trend.
6ince G#ly 200H" it loo!s li!e everything has changed. %he trend direction is #nclear" #nclear" noody !nows what is going go ing to happen next and people are serio#sly preparing for the coming collapse of the single ,#ropean c#rrency. c#rrency. 'y the way" way" for #s D$orex tradersE it wo#ld e nothing #t another opport#nity to ma!e a profit" so !eep smiling.
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8oes it all mean that mar!ets are not trending todayB f co#rse they are trending %rends %rends exist and they can e traded t raded #p and down for profit. %here will always e shortterm trends in any mar!et" the only &#estion is when 6o" the ig &#estion isI>how isI>how do we find the est trending mar!et and not miss the opport#nity of ta!ing trading signals in the direction of a strong trendB> @o# will find a definite answer soon.
%he elief that trend following is an o#tdated trading techni&#e is only partially tr#e. t is tr#e that there is hardly any mar!et with clear overall trend direction. @o# co#ld follow the temporary temporary trend only if you are able to determine the trend correctly. correctly. %his is the point where so many traders fail. A pair moving #p on a 0min#te time frame can act exactly contrary on an ho#rly timeframe. ,ven if yo# find a rare coincidence – coincidence – a c#rrency pair moving in the same direction on all time frames frames – yo# still need to !now =how =how well” the market – yo# is trendin to trendin to avoid very shortterm trends. %he sol#tion is smart and simple.
!ow to increase the "rofitability of any system
'efore yo# discover the most simple and effective method to determine the trend" lets see what itJs good for. for. All the trend following systems are ased on one common approach: ='#y the dips in an #ptrend and sell the rallies in a downtrend.> downtrend.>
+ets reveal one simple trading system that act#ally made a fort#ne for one famo#s trader and his investors. %he system =8onchian 3 K 20> is named after him. /ere is the set#p.
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n the chart aove" yo# see two indicators L the l#e line and the red line. %he l#e line is the indicator 64A 3 Dstands for simple moving average with with period 3E and the red line is 64A 20 D Dsimple moving average with with period 20E. 8onchians idea was very simple:
1# $uy when when the the blue line line crosses crosses the red red line line u"wards u"wards 2# Sell when when the blue blue line crosses crosses the red line line downwa downwards rds
,ven a 3year old child co#ld do this Act#ally" Act#ally" there is nothing special ao#t this system. All trend following systems are li!e this. 6ome systems are more advanced" with more sophisticated indicators" #t the common approach is to #y the dips and sell the rallies .
If everyone could do this% then what&s the money makin secret'
%he answer is that 8onchian #sed this system in strong st rong #ll mar!ets. @es" trending mar!ets mar!ets %his important note is the !ey to consistent profits as
ill#strated in the chart elow.
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%he first trade was profitale eca#se it was made in the direction of the strong trend. %he next trades lead to losses as the mar!et was t#rning #p and down witho#t a clear direction. Profits made in the t he first trade wo#ld e ta!en ac! in a series of losses.
/ow 8onchian dealt with it was smart. /e ignored all trading signals when the red line was not going #p on at least a -3 degree angle. /e wo#ldnt ta!e any losing trades after the first trade eca#se the red line l ine is not trending at all. t is in a so called choppy ?one . 6o why was 8onchian ale to ma!e a fort#ne from s#ch a simple system while others co#ld notB 'eca#se ' eca#se others wo#ld throw this system away as not profitale %he only =tric!> was to follow a good trend t rend and not ta!ing any other trades.
(hat is the lesson from this story'
f yo# !now how to determine the mar!et trend correctly" correctly" it co#ld ma!e a difference etween losing or rea!even rea!even and winning. 8onchian #sed a simple moving average to determine the trend and filter trading signals.
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1. 9hen the the mar!et mar!et was was trending" trending" he he t#rned t#rned his system system on. on. 2. 9hen the mar!e mar!ett was in choppy choppy ?one" ?one" he t#rned t#rned his system system off and and ignored any trading signals.
9hat yo# can can do is (#st the same with any trading system or root. 8etermining the trend #sing a simple moving average can e replaced with a more sophisticated" versatile techni&#e that yo# will learn in the next pages.
!ow to determine the trend
6ome people learn from their mista!es" #t smart people learn from other peoples mista!es. 6o lets start with examples of a wrong #t very common approach to mar!et trend analysis.
9hat yo# see in this chart is explosive price movement that is #s#ally the res#lt of a news release. All ro!ers" platforms and vario#s c#rrency tools are indicating a =strong #ptrend>" #ptrend>" tempting people to (#mp in and ma!e a profit. 9hat happens next is" at est" a choppy ?one" or a hard fall.
9hat is act#ally in the chart are a few consec#tive long green candlestic!s. %his
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is not a real trend" #t immediate price action" tempting traders to initiate trades and experience a costly and painf#l exercise. %o %o avoid falling into this trap" yo# need to foc#s on longer trends. t rends. %his is what a real trend loo!s li!e:
%he price is consistently rising with no s#dden changes or explosive movements. @o# @o# can expect that this trend will contin#e and yo# sho#ld ta!e only #llish signals. vio#sly the trend wont last forever and yo# can even have ad l#c! y entering the mar!et at the end of the trend" #t the odds work for you. you. t simply cannot e etter. etter. %here are 100s of free or proprietary indicators to identify the trend #t elieve or not" no indicator is etter than the h#man eye. As Alert ,instein said: =4a!e things as simple as possile" #t not simpler.>
Now lets reveal the easy #t the most effective method to identify the trend.
1. Moom the the chart inFo#t inFo#t to show show ao#t 200 200 ars. Notice Notice that that 200 ars ars on daily chart Dor 200 trading daysE correspond to 1 year. year. 2. Connect Connect the lower left left corner with with the #pper right right corner. corner. f the line overlaps with the price ars several times Dthe more times" the etterE" yo# have fo#nd a reliale #ptrend. 6ee the example elow.
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. Connect Connect the #pper left left corner with with the lower right right corner. corner. f the line overlaps with the price ars" yo# have fo#nd a reliale downtrend.
As yo# see" the mar!et is li!e a sea wave wave and it !eeps on going #p and down. 6ometimes the dips are too deep to consider it a reliale #ptrend" or o r the rallies are too high to consider it a reliale downtrend. nowing the =trend reliaility> is the !ey to discover the real and reliable trend. trend . 6o" how do we determine if the trend is reliale" or whether it is etter to stay offB %he est way is to forget any lagging indicators" #t to #se p#re price action.
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(hat is a trend drawdown
%rend drawdown is comp#ted from p#re price action and so is the est way to determine the trend reliaility. reliaility. t simply tells yo# how deep the price went against the c#rrent trend. @o# will appreciate this method in the next paragraph =Protecting against volatility>. volatility>. Now" ta!e a loo! at the chart elow.
%he l#e line indicates the deepest move against the c#rrent trend. n this example it is 2 pips. %he whole move in this chart is HH2 pips. %he trend drawdown is: 2 F HH2 O cca 25 Not ad. Conservative traders wo#ld prefer the trend drawdown to e elow 20 as it is more reliale. %he Qig dogsJ prefer trends with drawdown even elow 13. 6#ch trends exist almost every day in at least one $orex chart. %rends with drawdown elow 10 are very rare" #t when they appear" they are gold mines L yo# can easily achieve a winning percentage aove ;0.
%he lower trend drawdown O the more reliale trend O the greater s#ccess rate O the more consistent profit 13
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One more im"ortant note) /ow many ars sho#ld we #se to define the trendB 9e have #sed 200 ars in the examples aove. t is a compromise L not too m#ch" not too little. f yo# were to #se only 20 ars" yo# wo#ld ris! entering the shortterm explosive mar!et movements which are not real trends as we have explained aove. f yo# were to #se 300 ars" yo# wo#ld hardly find any c#rrency chart with trend drawdown elow 20. 'efore we show yo# how to systematically pic! the est trending pairs and time frames every day" day" lets loo! at how to #se the trend drawdown in the most important aspect of trading L #sing a 6top +oss
Protectin aainst volatility
+oo! at the chart aove. %he trader who placed the 6top +oss right after entering the mar!et deserves great appla#se #t the prolem is" the 6top +oss is too tight
6ome traders #se a fixed n#mer of pips" something li!e 30 pips or 100 pips... this is ad 6top +oss + oss has to reflect the c#rrent mar!et volatility. As! yo#rself:
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=when did the price go as deep as my 6top +ossB> f it has happened several times in the c#rrent chart" why wo#ld yo# thin! yo#r 6top +oss will not e hit nowB The ideal Sto" *oss should be reater than the trend drawdown#
+isten to the mar!et" not to the pips. n the example aove" the 6top +oss sho#ld e at least 2 pips. %oo m#chB 9ell" #se a smaller lot si?e. f yo# trade 1 minilot and R2 is aove yo#r ris! tolerance" to lerance" then #se microlots. r dont ta!e the trade. %he worst thing yo# can do is #se a small pip val#e (#st eca#se yo# want a small ris!. Act#ally" Act#ally" yo# wo#ld ris! more eca#se if yo# dont give the mar!et eno#gh space to reath" the 6top +oss wo#ld li!ely e hit regardless of how good yo#r trading system Dor reliale the trendE is.
@o# wo#ld do well if yo# wo#ld #se the trend drawdown drawdown S 1 pip as the pip val#e for the 6top loss D2 S 1 O 2- pips in the exampleE. f yo# want to increase the s#ccess rate #t on the other side" increase the ris! when compared to the profit potential" yo#r 6top +oss sho#ld e set at a m#ch safer 1.3 x trend drawdown.
Sto" *oss + 1#, - trend drawdown + 1#, - 2.. "i"s + cca .,/ . ,/ "i"s 6ome traders wo#ld prefer even 2 x trend drawdown O -55 pips. 6#ch 6top 6to p +oss wo#ld e safe eno#gh from the wild mar!et. ts all ao#t statistics.
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0-ercise Now its time for a little exercise. /ere are two charts with ovio#s #p and down trends.
%he maxim#m drawdown indicated y the l#e line starts from the high at 7H.55 and ends at the low at 7H.1H. %he trend drawdown in pips is: #33 – #1 + /#4 54 "i"s6 Now lets calc#late the percentage drawdown. %he visile #ptrend starts from the low at 75.05 and the maxim#m high is at 7;.30.
%he overall move in the c#rrent chart is: 7#,/ – 3#/3 + .#44 5.44 "i"s6
%he percentage drawdown is: 4 8 .44 + cca 149
No do#t" the trend t rend with drawdown elow 13 is solid. Place the 6top +oss at least -; pips elow the initial entry point.
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n the next chart" there is a downtrend.
%he trend drawdown in pips is: 1#./3, – 1#27,, + /#/11/ 511/ "i"s6 Now lets calc#late the percentage drawdown. %he visile downtrend starts from the high at 1.2H and the maxim#m low is at 1.25H2. %he overall move in the c#rrent chart is: 1#.2. – 1#232 + /#/3/1 53/1 "i"s6 %he percentage drawdown is: 110 F 501 O cca 1H %he trend reliaility is moderate. Place the 6top +oss +o ss at least 111 pips aove the entry point.
The ultimate solution 8iscipline and patience are the two !ey points po ints to s#cceed in the $orex mar!et.
6top h#nting the mar!et for every potential pot ential trade. Prepare efore trading. 6canning a few c#rrency pairs on all time frames can ta!e yo# ao#t 13 min#tes" #t the conse&#ences are inval#ale. Pic! only the est trending c#rrency pairs and time frames and ignore all other #npredictale movements.
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%rade less" profit more. A few g#idelines:
1.
Trade only if the trend drawdown is below 2/9 " Dpreferaly elow 13E.
2.
If the trend drawdown is below 1,9" 1,9 " yo# can e consistently profitale even with a simple trading system s#ch as =8onchian 3 K 20> Dpage 5E.
3.
If the trend drawdown is below 1/9" 1/9 " yo# have fo#nd a gold mine @o# can simply simply enter the mar!et in the trend direction with a ;0 s#ccess rate.
%he :ore- Trendy #ltimate sol#tion scans - $orex pairs on all time frames for yo# every second. t calc#lates the trend drawdown for each chart and shows the most reliale trends sorted y reliaility ased on yo#r preferences.
Clic! here to watch a video how it wor!s
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Section 2 – Patterns !ow to draw trend lines
4ost traders thin! that drawing trend lines is all ao#t connecting vario#s highs and lows. 9itho#t proper !nowledge K experience" yo# wo#ld wo#ld see them everywhere" however not all trend lines sho#ld e considered. f yo# follow the g#idelines to drawing good trend lines" there is a high chance that the price will respect yo#r trend line and get repelled y it" or it will rea! thro#gh the trend line res#lting in a massive and profitale move. +ets start with some asics.
1.
%he u""er trend line Dl#eE line Dl#eE connects at least two lower highs" so it is sloping down.
2.
%he lower trend line Dl#eE line Dl#eE connects at least two higher lows" so it is sloping #p.
3.
%he red trend line in the chart is a little controversial when it comes to disc#ssion. t is ovio#sly an #pper trend trend line Dconnecting two highsE" #t it is sloping #pC 6#ch 6#ch a trend line alone is not valid not valid #nless we deal with =9edges> and =$lags> as yo# will see in the next pages.
)ememer: an #pper trend line is sloping down" while a lower trend t rend line is sloping #p.
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0-am"les) ;ood Trend *ines vs# $ad Trend *ines 9hen the price rea!s thro#gh a strong trend line" it goes go es f#rther" f#rther" offering yo# a great profit potential. @o# can draw many trend lines in one single chart" #t there are several g#idelines to choose only the strongest trend t rend lines: 1.
Prefer trend lines with more than two touchin "oints# D%rend D%rend lines ecome stronger the more times they are testedE.
2# The touchin touchin "oints "oints should should not be be too close toeth toether# er# . *oner trend lines are stroner than shorter trend lines# +onger trend lines are also seen on the #pper time frames" so more traders are aware of them.
n the example aove the to#ching points po ints are very close together forming an #nreliale trend line. %here is no other to#ching point on the rest of the trend line.
n the next example elow" the two to#ching points are not so close together" together" #t the trend lines are too short. < short. < ood trend line line should be at least ,/ t rend lines in this chart as bars lon. lon. %here exist m#ch etter #pper and lower trend shown in the previo#s page. 20
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=ow let&s see some ood trend lines>
%he trend line aove has to#ching to #ching points and can e considered as m#ch stronger than trend lines in the previo#s examples. %he points are evenly distri#ted and the trend line is long eno#gh. All three g#idelines are met perfectly.
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Now this trend line is a monster t is long eno#gh with 3 to#ching to #ching points. @o# may notice that there are two gro#ps of two points tthat hat are too close together" together" #t this is not a prolem as long as the other points meet the g#ideline. Treat a rou" of close "oints as one ?bi "oint”#
?Trianles% :las% (edes###” Now that yo# !now how to draw trend lines" yo# are one step away from discovering the oldest mar!et phenomenon: chart patterns. @o# are ao#t to learn incredily reliale price formations that have time and time again provided #s with consistent profits.
%he #pper and lower trend lines are forming a trianle as trianle as seen in the next chart. As the price is oscillating etween the two o#nding lines" the #yers and sellers are in t#g of war" war" and event#ally the price will rea! thro#gh one of the lines L noody !nows which one n the next pages yo# will learn how to participate in this explosive move.
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:allin wede is wede is li!e triangle" #t oth trend lines slope down. )ecall that the ottom line alone wo#ld not e a valid trend line. @o# egin y drawing the #pper trend line and then yo# complete the wedge or triangle Dit depends on which line has more to#ching pointsE.
ne important note: the note: the u""er and bottom trend lines must convere so that the "rice is bein s@ueeAed#
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%he flag pattern is encompassed y two t wo parallel lines. %he price is not s&#ee?ed y the trend lines" #t it is moving inside the channel formed y the trend lines. :las are usually seen as the market "auses after a bi move before continuin its main trend#
All the presented patterns aove are in an #ptrend. %he #ptrend does not need to e perfect" the price efore the pattern is (#st rising. Chart patterns after a downtrend are similar. 9e will foc#s only on contin#ation patterns " that is" #ying in an #ptrend and selling in a downtrend. @o# may hear ao#t reversal patterns " #t trading against the trend re&#ires a lot of of experience. 4any an!s
have crashed and many fort#nes were lost eca#se of st#orn traders trying to pic! the tops to ps and ottoms. %rend %rend is yo#r friend" so !eep it simple
!ow to trade chart "atterns Now its time to reveal the definite strategy to enter an order o rder"" place yo#r 6top +oss and ta!e a profit" so yo# dont need to watch the mar!et and yo# dont let yo#r emotions control yo#r trading.
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The best way to enter the market is by usin ?Sto" Orders” and ?*imit Orders”# 9hen the orders are placed" they are located on the ro!ers server" server" so yo# can safely leave yo#r trading platform. %his rings yo# freedom from trying to spot the est entry point.
%he entry r#le is simple: 1.
f yo# trade a pattern in an #ptrend" "lace a $uy Sto" Bust above the u""er trend line# 9here line# 9here exactlyB @o# may want to place it 3 pips aove the trend line to spot the real rea!o#t. %he advanced approach is to reflect the mar!et volatility as we will disc#ss it later. later.
2# Place Place a Sto" *oss Bust Bust below below the lower lower trend trend line# line# . f yo# trade trade a pattern pattern in a downtren downtrend" d" yo# do (#st (#st the opposite opposite L place place a 6ell 6top order elow the lower trend line and a 6top +oss aove the #pper trend line. 4ore in the ,xercise. %he interesting part is when to %a!e A Profit. 4any traders enter the trade
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lindly witho#t any idea where to exit Notice that the 6top +oss elow the trend line reflects the c#rrent mar!et volatility. volatility. t is not Dand never sho#ld eE a fixed n#mer of pips. %he same sho#ld hold for the %a!e %a!e Profit. @o# cannot (#st decide that 30 pips is eno#gh and yo# wo#ld exit the position. 30 pips is very different on min#te time frame and daily time frame.
There are two reat methods to find the Take Profit level) 1.
ProBection method L method L easy
2.
:ibonacci method L method L #sing several %a!e %a!e Profit levels" a little complex" #t etter
+ets foc#s on the first oneT The oneT The ProBection ethod. ethod.
1. 4eas#re 4eas#re the the greatest greatest width of the the pattern. pattern. 2. %his pip pip val#e val#e will e #sed for for the %a!e %a!e Profit. Profit. *se the same method for triangles" wedges" flags or single trend lines. As the mar!et rea!s from the choppy ?one" it normally travels at least the pro(ected 26
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distance.
ne note ao#t the flas and wedesD As the price travels etween the o#ndary lines" it happens that the trend line is not ro!en and the pattern pa ttern ecomes deeper" deeper" or even no more valid. n s#ch a case cancel the order and place a new one to reflect the c#rrent sit#ation. 6ometimes the sit#ation is not going as yo# had planned and the price rea!s thro#gh the other trend line. %hen simply cancel the order and forget the pattern. )ather not ta!ing the trade than ta!ing a ad trade is the !ey of s#ccessf#l trading. %here will e plenty of other opport#nities
eep in mind that chart patterns can appear and disappear" disappear" or morph into another patterns. An emerging pattern is is not confirmed #ntil the relevant trend line is ro!en. 0-ercise
$irst" lets loo! at the clean chart elow. %here are several significant significant highs and lows that can e connected with a trend line. 'efore the choppy ?one we see a minor #ptrend" so we are going to t o complete the pattern and place a #y order. order.
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%here is (#st one way to draw the two trend lines that meet the g#idelines. %hese trend lines are forming a triangle pattern. 1.
Place a $uy Sto" order o rder Bust above the u""er trend line .
2# Place Place a Sto" *oss Order Order Bust Bust below below the lower lower trend trend line# line# . %he distance distance of the the highest highest high and and the lowest lowest low of the pattern pattern is ; ; pips" so this is the pip val#e for the %a!e %a!e Profit.
As the pattern contin#es to grow" yo# can replace replace the '#y 6top order a it lower to the trend line" #t its not necessary. $inally" $inally" the #pper trend line is ro!en" the '#y 6top order is exec#ted and the %a!e %a!e Profit is hit
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Now the well!nown techni&#es are made in the opposite op posite direction: 1. 6ell 6top order elow the lower trend line" 2. 6top +oss aove the #pper trend line" . Pro(ected %a!e Profit.
%he trend line is ro!en" the 6ell 6top order is exec#ted and we ma!e money in a downtrend #ntil the t he %a!e %a!e Profit is hit. As we #se a single %a!e %a!e Profit level" the downtrend contin#es witho#t #s... let it o>
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EeconiAin chart "atterns
Professional traders #sed to analy?e chart after chart to find reliale patterns on daily and even intraday time frames. %oday" comp#ting power comes into play. is a software sol#tion ale to recogni?e chart patterns on all :ore- Trendy is charts every second
.4 :ore- "airs - 7 time frames + ./3 charts> t has an intelligent algorithm to recogni?e strong trend lines and discover the most reliale chart patterns at the c#rrent time. @o# will learn more techni&#es ao#t chart patterns in the memership s#scription: •
*sing $ionacci techni&#e for m#ltiple %a!e %a!e Profit levels
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%rading =p#llac!s> y #sing +imit rders for a etter ett er entry point
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/ow mar!et volatility is #sed to filter false rea!o#ts
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