The pattern can offer a precise entry given the fact that the neckline is generally based on several highs or lows. The price target adjusts to the size of the pattern. Maybe if you offered trade examples from actual trading within a third-party verified account you could be taken seriously. You can manage you subscriptions by following the link in the footer of each email you will receive. Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
Hey, thank you for your feedback. Hope you keep enjoying it: Cool indicator dude, I am already using MA so nice to have another addition into my list while I am very pleased with this alert system, it helps me spot any good opportunities rather easily without having to research for it. Keep it up … Best regards. I won 23 trades out of 28 which is very impressive… Thank you the indicator mate. The Magic Pattern on Forex Market: The advantage of such indicator is that it's doing all the hard work for you.
It scans many pairs as you want for 4 different timeframes M30 to Daily. Would do the tedious work on your own? Just get alerted when it's about to happen. The Indicator doesn't repaint and once attached to the chart it displays previous patterns:. This tool indicates which currency is the strongest top of the dasboard and which currency is the weakest bottom of the dashboard. This tool is used to filter signals For example we sell on M and sometimes we buy on W.
It's also advisable to avoid longs, since the price could decline further. A stop loss on short positions is placed above the latest peak, or above a recent swing high within the pattern.
The estimated decline is equal to the height of the pattern subtracted from the breakout point. The rationale for the double top pattern is that uptrends make higher swing highs and higher swing lows. Once the pattern completes the price failed to make a substantially higher swing high, and then proceeded to make a new low by dropping below the prior pullback low.
This draws the uptrend into question, and there is evidence of a downtrend beginning. A double bottom forms when the price makes a low within a downtrend, and then pulls back to the upside. On the next decline the price stalls near the prior low, then rallies above the pullback high. It's called a double bottom because the price stalled in the same area twice, unable to drop below that support area. The pattern is complete, and traders may take long positions, when the price rallies back above the pullback high.
Patterns may cover a large price or time area, or they may be small, occurring quickly. The price target adjusts to the size of the pattern. Smaller patterns have smaller price targets than big patterns. The price target for the double bottom is similar to the double top, except with the double bottom we add the height of the pattern of the breakout point. Not all traders are interested in taking positions on a chart pattern breakout.
Even so, the double top bottom pattern still alerts traders when they may wish to reconsider their long short positions. The price target is only an approximation of how far the price could move after a breakout. The price may not reach the target level, which is why a stop loss is used, or the price could fall well below the target.
What the target does provide is a reward: The price target and stop loss are based on the height of the pattern. This means the expected profit and risk are roughly the same. Typically, professional traders prefer trades where the profit potential is great than the risk. Not all patterns are worth trading. The ones offering higher reward: