BEST REVERSAL PATTERNS
During the existence of the market, a large number of technical analysis figures have been found. They all work with varying degrees of accuracy.
Such a large number of patterns can confuse anyone, especially a beginner.
Today we will look at just two models that are quite common and, with proper trading, can bring you big profits.
Both models are united by one idea – breakouts.
Beginning.
First, the price goes down, creating new lows below the previous ones and new highs below the previous ones.
At some point, the sellers' strength ends and the market turns around almost immediately, or it stops before accelerating upwards.
For profitable trading, a trader must learn to catch this moment when the strength of the trend is extinguished and the price is preparing for a reversal.
Confirmation.
Stopping the previous trend is not a reason to enter a trade, you need to wait for confirmation.
Confirmation will be a new maximum, higher than the previous one, after which the price will try to start moving down again, making a pullback down, but there will not be enough forces for further fall and the price goes up.
The entry point will be the moment when the price returns to the breakout line, bounces off it and goes up.
Stop loss.
Very often, such formations will give you a lot of movement and big profits.
But do not forget about the stop loss, which can be set below the breakout line (risky, since there may be an earlier close) or below the previous minimum.
You can find a lot of trading opportunities on the market every day, but beginners are advised to study a couple of patterns and learn how to trade them correctly.
Take your time and luck will definitely find you!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Such a large number of patterns can confuse anyone, especially a beginner.
Today we will look at just two models that are quite common and, with proper trading, can bring you big profits.
Both models are united by one idea – breakouts.
Beginning.
First, the price goes down, creating new lows below the previous ones and new highs below the previous ones.
At some point, the sellers' strength ends and the market turns around almost immediately, or it stops before accelerating upwards.
For profitable trading, a trader must learn to catch this moment when the strength of the trend is extinguished and the price is preparing for a reversal.
Confirmation.
Stopping the previous trend is not a reason to enter a trade, you need to wait for confirmation.
Confirmation will be a new maximum, higher than the previous one, after which the price will try to start moving down again, making a pullback down, but there will not be enough forces for further fall and the price goes up.
The entry point will be the moment when the price returns to the breakout line, bounces off it and goes up.
Stop loss.
Very often, such formations will give you a lot of movement and big profits.
But do not forget about the stop loss, which can be set below the breakout line (risky, since there may be an earlier close) or below the previous minimum.
You can find a lot of trading opportunities on the market every day, but beginners are advised to study a couple of patterns and learn how to trade them correctly.
Take your time and luck will definitely find you!
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
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