Double bottom - a figure that occurs too often. I must say that in addition to the figures, which help us to trade, we will use the support and resistance tunel levels, harmony graph theory construction candles, as well as tools such as stop loss and take profit.
Gregory Morris Candlesticks Steve Nison beyond candlesticks free trading system-payment of the next candle. Belyaev Definition figures rules of application. To start watching a video:
Let's tunel start with the fact that reversal patterns (read - Doji pattern as a sign reversal reversal pattern head and shoulders reversal pattern - Forex Dragon) - it's not just an excuse to enter the market and the moment of transactions need to go. This means that if we meet the figure of the double top and at the same time we are open long trades, then it is correct that the market tunel demands from us - is to get out of deals.
Figure double top and double bottom - figures that are used by modern traders are very active. Many continuously used trading systems that identify these patterns and use them to determine when to enter and exit the market time. Most likely, the figure is known for a long time. Given that the East, namely the Japanese electronics market analysis and trade often affects Western, as well as taking into account the landscape of Japanese land, we can assume tunel that this figure was first noticed, studied and applied there.
Double bottom - a figure that, like the figure double top, elementary found on the chart. It is enough to observe a strong upward movement (Figure Double Top), after which there are two notable consistently high, they are approximately at the same level and at least disposed therebetween.
Trade rules provide construct two horizontal lines. One through the highs and the other through a minimum. It will support and resistance levels, which will be based on our tricks of the trade.
Be prepared for the fact that on a real schedule will not be easy to postpone the horizontal lines. The rules are simple. tunel Need to use both the maximum to build the line, then we can effectively tunel use the resulting levels.
Our task is to use graphics tendency to harmony and apply it to find the desired level of profit. To do this, we measure the distance from the support and resistance to postpone it down from the support level. This will be the target.
The next step - the definition of the input level. Need to push the level of support, which was formed at a minimum. Thanks to him, we can establish a sell stop and wait until the schedule breaks this level.
Stop loss should be placed tunel between the level of support and resistance. The ratio of the stop-loss to take profit should be chosen independently. Depending on this ratio, which can be from 1.5 to 3 and more and it is necessary to put a stop-loss.
- Sergei, do you think it could be considered an archaic model of double bottom. - Of course, the modern market can hardly be compared with the medieval. However, it has the characteristics of which have been preserved. For example, the uncertainty that characterized each point of the graph. Therefore, the trader is constantly in a state of stress and revaluation of probabilities. In such circumstances, the more updated methods used, the more reliable. - You use in your trading system model Two vertices? - Yes. This model is used in my trading system, however, I use it only to withdraw from the market tunel and never go through the model.
Today we met with a figure of two peaks. Analogue of a bear market should be considered double bottom. Figures can be used as both an entrance and an exit from the market. When using figures apply:
You have to understand that when using this model, as well as many others, there is an element of admission. That is the point that we use to trade, very undefined. In such circumstances, a trader tries to use the most reliable techniques and classical approaches.
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