Models charts patterns are repeated during the movement of the price and have the same impact expected when they arise, nature human does not change, and the price reflects all felt by investors and they are thinking of hope in the profit and fear of loss, etc., it was noted that when you repeat these models have the sameimpact on the price movement.
The models are a combination of trend lines and Tops and Bottoms already explained, these models come to refer to either the previous trend reversal is called reflexive models (Reversal Patterns)
Or to the continuation of the trend models called continuity (Continuation Patterns).
Note very important:
Continuity models with a much higher success rate of reflective models.
Introduction to art forms
As we studied the market moves in trends, the trend upward is the tops and bottoms upward and the downward trend is the tops and bottoms regressive. But the market does not move in the direction of the upside or downside only, but most of the time the market is in the lateral movement that lateral movement is that concern us in the study of models art. When studying these lateral movement we find that it is possible to reflect the current trend of the market in the case of reflection and that the risk trade with the current trend, or find that the lateral movement just pick up the breath of the market and the market Sovv current trend resumes It is better to trade with the current trend.
Models artistic patterns are repeated during the movement of the price, because history repeats itself, and the human nature of the investors do not change, price quoted reflects all felt by investors hoping to profit and the fear of loss, etc., it was noted that when you repeat these models have the same impact on the movement of Price.
The models are a combination of technical trend lines and Tops and Bottoms already explained, these models come to refer to either the previous trend reversal is called reflexive models (Reversal Patterns),
Or to the continuation of the trend models called continuity (Continuation Patterns).
General rules for trading models:
There must be a clear direction never be the form, the form and void if it appeared to be a clear trend preceded.
Whenever the size of the model and time DO largest whenever the credibility and greater influence.
Models can not be used or traded before Ktmalh, may not be assuming the completion of the form only after it is broken.
Transflective models suggest a trend reversal, so it is best to be preceded by an important trend line break.
The objectives of the models is the minimum expected price movement could be beyond price in the case of the model failed to achieve the minimum target expected to be the model has failed.
Double Top
Is Reflexive model, comes on the upside, and consists of two summits in one horizontal level.
The form of the form:
Stages of the form:
At the end of the upside-controlled price drops and sellers component of the first summit, then returns Buyers to dominate the market again Faisad the price component of the bottom and up to the first summit level.
Buyers are unable to overcome the first summit dominated by sellers Fahbt price component of the second summit and refract the bottom and reversal in trend begins to ascend to the landing.
Take advantage of the form:
Take advantage of the form in trading be selling after breaking the bottom formed between the two summits, or when re-tested.
The goal of the form:
Measure the distance from the bottom to the peaks, and drop the same distance from the point of breakage.
Double Bottom
Is reflective model, comes in the downward direction, and consists of Haan in the horizontal plane and one.
The form of the form:
Stages of the form:
At the end of the downward trend dominated Buyers and climb the first component of the bottom price, sellers and then return to dominate the market again Fahbt the price component of the top and the bottom up to the level of the first.
Vendors can not overcome the bottom first and go up the price buyers dominated the second component of the bottom and break summit begins reversal in the direction of landing to climb.
Take advantage of the form:
Take advantage of the form in trading be buying after the break formed between Alhaan the Summit, or when re-tested.
The goal of the form:
Measure the distance from the bottom to the peaks, and drop the same distance from the point of breakage.
The form of the form:
Stages of the form:
At the end of the uptrend starts in control and sellers price drops component of the left shoulder (Left Shoulder) and pivot the first line of the neck (Neck line)
Buyers begins to control the price again and rises to make the highest summit of the previous summit, which is the head (Head)
Then dominated again and sellers descend the components second point price in the neckline.
Neckline is defined as up between the previous bottom of the previous top and bottom of the right shoulder.
Forces and start buying in weakness and controlled vendors prices, Vinsr the neckline trend is reflected onto a landing.
Take advantage of the form:
Take advantage of the form in trading be selling after breaking the neckline, or when re-tested.
The goal of the form:
Measure the distance from the head to the neckline, and drop the same distance from the point of breakage.
The form of the form:
Stages of the form:
At the end of the downward trend dominated Buyers and climb the first component of the bottom price, sellers and then return to dominate the market again Fahbt the price component of the top and the bottom up to the level of the first.
Vendors can not overcome the bottom first and go up the price buyers dominated the second component of the bottom and break summit begins reversal in the direction of landing to climb.
Take advantage of the form:
Take advantage of the form in trading be buying after the break formed between Alhaan the Summit, or when re-tested.
The goal of the form:
Measure the distance from the bottom to the peaks, and drop the same distance from the point of breakage.
Triple Top
Is reflexive model comes on the upside, consists of three peaks in the horizontal plane and one, and is similar in composition to some extent the head and shoulders pattern.
The form of the form:
Stages of the form:
At the end of the upside-controlled price drops and sellers component of the first summit, then returns Buyers to dominate the market again, go up the first component of the bottom price and up to the first summit level.
Buyers are unable to overcome the first summit and price drops again component of the second summit, but buyers are back and climb the second component of the bottom price and up to the level of the first and second summit.
Buyers are unable to overcome the first and second summit, dominated by sellers Fahbt price component of the Third Summit.
Neckline is the line that connects the bottom level first and second bottom.
Price begins to fall and break the neckline trend reversal begins to ascend to the landing.
Take advantage of the form:
Take advantage of the form in trading be selling after breaking the neckline, or when re-tested.
The goal of the form:
Measure the distance from the peaks to the neckline, and drop the same distance from the point of breakage.
Triple Bottom
Is Reflexive model, comes in the downward direction, consists of three bottoms in a single horizontal plane, and is similar in composition to some extent form an inverted head and shoulders.
The form of the form:
Stages of the form:
At the end of the downward trend dominated Buyers and climb the first component of the bottom price, sellers and then return to dominate the market again Fahbt the price component of the first summit and up to the first bottom level.
Vendors can not overcome the first bottom and climb the price again the second component of the bottom, but the vendors and fall back price component of the second summit and up to the level of the first and second bottom.
Vendors can not overcome the first and second bottom, and go up the price buyers dominated the third component of the bottom.
Neckline is the line that connects the first summit level and the second summit.
Price begins to climb and a broken line neck starts direction in reflection from landing to climb.
Take advantage of the form:
Take advantage of the form in trading be buying after breaking the neckline, or when re-tested.
The goal of the form:
Measure the distance from the bottoms area to the neckline, and drop the same distance from the point of breakage.
Head & Shoulders
Is a model Reflexive comes on the upside, and consists of three peaks, the central summit is higher than the other two summits.The form of the form:
Stages of the form:
At the end of the uptrend starts in control and sellers price drops component of the left shoulder (Left Shoulder) and pivot the first line of the neck (Neck line)
Buyers begins to control the price again and rises to make the highest summit of the previous summit, which is the head (Head)
Then dominated again and sellers descend the components second point price in the neckline.
Neckline is defined as up between the previous bottom of the previous top and bottom of the right shoulder.
Forces and start buying in weakness and controlled vendors prices, Vinsr the neckline trend is reflected onto a landing.
Take advantage of the form:
Take advantage of the form in trading be selling after breaking the neckline, or when re-tested.
The goal of the form:
Measure the distance from the head to the neckline, and drop the same distance from the point of breakage.
Inverted Head & Shoulders
Is a reflexive model comes in a downward trend, consists of three bottoms, the bottom of East less than Alhaan the the others.
The form of the form:
Stages of the form:
At the end of the downward trend starts Buyers are in control and climb the price component of the left shoulder (Left Shoulder) and the first point in the neckline (Neckline).
Begins sellers in control of the price again and reduced the price to make the bottom less than the previous bottom, and have the head (Head).
Buyers dominated again and go up the price components second point in the neckline.
Neckline is defined as up between the previous summit of the head and the previous summit of the right shoulder.
Weaken the sales forces and gradually dominated Buyers price, Vinsr the neckline and reflected the direction of the landing to climb.
Take advantage of the form:
Take advantage of the form in trading be buying after breaking the neckline, or when re-tested.
The goal of the form:
Measure the distance from the head to the neckline, and drop the same distance from the point of breakage.
Ascending triangle
Is a continuation pattern model, the ascending triangle is a form of symmetrical triangles, and differs in that the upper part of the triangle is horizontal.
The form of the form:
Stages of the form:
On the upside there are attempts by buyers to pay the price for attempts to offset higher than the sellers to pay the price down.
The price is rising bottoms and tops in the horizontal plane and one.
After the break level summits completed price uptrend.
Take advantage of the form:
Purchase after breaking peaks area.
The goal of the form:
The height of the triangle is measured from the bottom first formed it to the area of the peaks and drop the same distance from the point of breakage.
Descending Triangle
Is a continuation pattern model, the ascending triangle is a form of symmetrical triangles, and differs in that the bottom of the triangle is horizontal.
The form of the form:
Stages of the form:
There will be attempts by sellers to pay the price down offset attempts by buyers to pay the highest price.
The price is falling tops and bottoms in a horizontal level one.
After breaking completed Bottoms price level downward trend.
Take advantage of the form:
Sales after breaking Bottoms area.
The goal of the form:
The increase of the triangle is measured from the first summit formed it to the area of the bottoms and drop the same distance from the point of breakage.
Symmetrical Triangle
Is a continuation pattern model, representing a loss market between buyers and sellers, as the market is moving in a narrow range for a period where the forces of supply and demand roughly equal, the model and represents a pause before the completion of the previous trend.
The form of the form:
Stages of the form:
On the upside, there will be attempts by buyers to pay the highest price, faced strong sellers, and vice versa in the downward direction.
Each new top or the bottom of the new be made on a smaller scale than before, and after several model consists of reciprocal movements between the ups and downs, as shown in the form of the above model.
Then the model is broken in the former direction is formed and completed price direction.
Take advantage of the form:
On the upside: Buy with breaking the downward trend line of the triangle component.
The downside: short with broken uptrend line component of the triangle.
The goal of the form:
Measuring the vertical distance of the widest part of the triangle, and drop the same distance from the point of breakage.
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