AUDUSD V BOTTOM REVERSAL PATTERN Trading V-Patterns
by Constantino
The recognition of patterns and its body of knowledge of how to react and what to expect helps a trader's success.
Traders are always analysing 'Trends' and 'Reversals.' Their eternal question for traders is 'Can the trend continues?'.
Knowing trends and trend reversals are critical for any trader’s success.
Chart patterns classification of 'Continuous' or 'Reversal' patterns helps
traders to identify specific patterns and expect their outcome from current price action.
Traders move prices between key support and resistance areas (a tug of war) as their perception shifts between optimism and pessimism.
This movement of price adhering to key support and resistance areas create chart patterns.
Reversal patterns exhibit a total shift of trends from bullish to bearish or bearish to bullish in a single pattern structure.
Examples of the reversal patterns are 'Head and Shoulders, Double Tops and Bottoms.
A knowledge of reversal patterns helps traders to estimate the 'end of trends' to execute trades in a timely fashion for maximum gains.
This knowledge also helps traders to time the trades in the opposite direction and to place smaller stop levels.
Here I discuss one of the key reversal patterns ('V Chart Pattern') and present examples of how to trade them.
Please note, all V patterns are classified as a bullish 'V-Bottom' and complimentary
bearish patterns ('V-Top').
V Patterns As the name implies, the 'V' chart patterns have the letter 'V' shape and prices shift their momentum from an aggressive sell-off (Bearish)
to aggressive rally (Bullish) in its structure.
med when its trend is sharply switched from bearish to
bullish (in case of V-Bottom) or bullish (or sideways) to bearish (in case of V-Top patterns).
Trading V-Patterns
The critical aspect of the V pattern is it must have a sharp downtrend followed by a quick and sharp uptrend reversal
NOTES
April 29 - Mercury at Greatest Eastern Elongation. The planet Mercury reaches greatest eastern elongation of 20.6 degrees from the Sun. This is the best time to view Mercury since it will be at its highest point above the horizon in the evening sky. Look for the planet low in the western sky just after sunset.
April 30 - New Moon. The Moon will located on the same side of the Earth as the Sun and will not be visible in the night sky. This phase occurs at 20:30 UTC. This is the best time of the month to observe faint objects such as galaxies and star clusters because there is no moonlight to interfere.
April 30 - Partial Solar Eclipse. A partial solar eclipse occurs when the Moon covers only a part of the Sun, sometimes resembling a bite taken out of a cookie. A partial solar eclipse can only be safely observed with a special solar filter or by looking at the Sun's reflection. This partial eclipse will be visible throughout most of the southeast Pacific Ocean and southern South America. It will be best seen from Argentina with 53% coverage.
(NASA Map and Eclipse Information)
