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38# ABC Pattern or the 123 chart pattern.

The No stop hedged Grid trading EA. The Good Vibrations EA. It is here that we label the swing high as point. As soon as a trend line breakout occurred. You can use the same pattern to exit the trade as well. Price targets - While this pattern does not give any projected target, a minimum target can be estimated by the measured move concept. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs.

Learn The Powerful Forex Trading Strategy The Forex trading strategy is based on price action and normal Forex market structure that any trader should know. The 1 2 3 trading strategy is used as a continuation trading setup that is designed to take advantage of the trend of the market.

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Alex du Plooy 0 Comments. Now we are going to move into the trading strategy section of this course. The simple trading strategy that I have selected is the strategy for continuation trades and end of trend trades. First we are going to look at the pattern as an end of trend, or reversal trading strategy, also called the top and bottom pattern.

The top and bottom pattern is a very powerful pattern that signals a trend reversal. It can also be used as a trend continuation, which will be described shortly. First, the reversal pattern. In an uptrend, the market hits a new high, labelled point 1.

Price then pulls back to a short-term support level, labelled point 2. Finally, price moves up to an area between points 1 and 2, labelled point 3. It then reverses down again and begins a trend in the new direction. Exit near strong resistance levels not. Share your opinion, can help everyone to understand the forex strategy. Here are some recent stock charts.

Above is simply a daily bar chart of the stock of the big blue chip US stock General Electric. But it is VERY simple when you look at the chart. This is the correction Point 3: If it does then all bets are off. Once you grasp the fundamental basics and practice you will see them all over the place. The rules to this super easy system are simple. Identify a current trend 2. Identify 2 signals 3. Place your trade 4. Set your own target example 20 pips b.

As with any trading strategy I talk about on my blog, location is important and the 1 2 3 reversal is no exception. Regardless of how you use it, you must fully understand the risks in trading as well as keep your risk parameters conservative so you can withstand any losing streak.

Breakouts fail so the most important aspect of the 1 2 3 reversal pattern is what price does on and directly after the breakout. You want to see price acceptance of the new high. Of course there will often be a pullback after the breakout Ross Hook , but that does not make this price pattern invalid. This is a high level overview and while you may find this enough to trade, others will look for other variables to line up.

A break of the green dotted line can be your trading entry. You can see at the last pattern very clearly — a price pullback does not make this trade invalid. It is easy to see anything you want on a chart.

One technique you may want to use to determine if the potential 1 2 3 setups you are looking at is a possible trade, is to use a Fibonacci retracement zone. What it can do is make sure that you are seeing a true pattern that has a real retracement as opposed to a simple consolidation pattern. I set my Fib ratios to. As long as price finds its way between these two ratios, I could potentially consider this a trade setup.

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The Chart Pattern forex trading strategy used used when the pattern forms on your charts. The Trading rules are really simple to follow. Nov 28,  · This is also called the reversal pattern and once you learn to find it you will see a rapid increase in your trading success. Here you can learn How to find opportunity in Forex. The first element to look for in a high is a strong uptrend. reversals happen all the time in the context of trading ranges and consolidations but don’t 5/5(1). strategy is a forex trading system based on the pattern, strategy is a forex trading system based on the pattern, Free Forex Strategies, Forex indicators, forex resources and free forex forecast. Forex Strategies Resources. Home Page; Blog 12# strategy Forex Trading System.