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best free forex signals from Dark Cloud Cover
Published by bestsignals
best free forex signals from Dark Cloud Cover
Dark Cloud Cover is BEARISH REVERSAL
properties to place trading signals
1. Two candle pattern
2. The first candle has an open real body, in line with the Bull trend
3. The market gaps higher on the open of the second candle
4. The second candle has a filled real body
5. The second candle’s body closes ‘well into’ the body of the first, ie, below the halfway mark
of the first candle’s real body
6. The market is in an uptrend
Dark Cloud Cover and the best forex trading signals performance
Dark Cloud Cover is a marvellously gloomy sounding two candle reversal pattern
seen during an uptrend. The first candle has an open real body and is in line with
the bullish tone of the market. On the second day we see weakness after a strong
start, and a close is posted well into the real body of the first candle. While it is
generally not as strong as a Bearish Engulfing Pattern, I think the close on the
second day below the Marabuzo line of the first candle should at the very least be
treated with suspicion if you’re long.
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best forex signals from Bearish Engulfing Pattern summary
Published by bestsignals
Bearish REVERSAL Engulfing Pattern properties to make the best forex signals
1. Two candle pattern
2. The first candle has an open real body, in line with the Bull trend
3. The second candle has a filled real body
4. The second candle’s real body surrounds the real body of the first
5. The size and position of the shadows on either candles does not matter
6. The market is in an uptrend when the pattern appears
best forex signals from Bearish Engulfing Pattern summary
The Bearish Engulfing Pattern is a two candle pattern in a rising market where the
second candle has a filled real body that surrounds the open real body before it.
This is generally a strong reversal pattern as it often takes a lot of effort and
achievement from the bears for it to form. It is one of my particular favourites for
this reason. Also it usually coincides with the Western bearish outside day. It should
be ignored at your peril!
Candlestick Charts
Engulfing patterns versus outside days
There is a pattern in Western analysis called a bearish outside day, or a key reversal
day. The rule set for this is a bear day in a rising market with a high above the
previous day’s high and a low below the previous day’s low. In other words the
day’s range is outside that of the day before, and a weak close is posted. This is
pretty similar to an Engulfing Pattern, but not always, as the candlestick version
doesn’t necessarily require a greater range on day two, just a larger (filled) real
body. In other words the range doesn’t have to come into the equation -
Guidelines to trade by using Rectangles
In a rectangle, price moves horizontally between overhead
resistance and underlying support
best forex signals and Breakout
A breakout occurs when price closes outside the boundary of a chart pattern.
Touches There should be at least two touches of each trend line.
Trend lengths
A short-term trend lasts up to three months. An intermediate term
or secondary trend lasts between three and six months. A long-term trend or primary trend lasts longer than six months
Tops have price trending into a chart pattern from the bottom,
and bottoms have price trending into a chart pattern from the top
The price velocity leading to and exiting from a chart pattern are often similar even if the direction is reversed.
Undershoot or overshoot
Both undershoot and overshoot occur before a chart pattern begins. Undershoot happens when price briefly dips below
the entrance of a chart pattern. Overshoot happens when price briefly soars above it.
A rectangle forms because
traders want to own the stock at two fixed prices, one low and one
high, setting limits (for a time) on how far price moves.
Prices trend up to the formation and then
oscillate between two horizontal trend lines
before breaking out upward.
Measure rule and take profit for best forex signals
Measure the height of the rectangle from trend line to trend line.
For upward breakouts, add the height to the top trend line; for
downward breakouts, subtract it from the bottom trend line. The
result is the minimum expected move. For a maximum price
target, measure the length of the rectangle and extend it vertically
above the top trend line (for upward breakouts) or below the
bottom one (downward breakouts). The price becomes the
maximum expected move.
Wait before place forex trading signals for breakout Since you cannot be sure in which direction a rectangle will break
out, wait for prices to close outside the trend line before fx trading
in the direction of the breakout.
Tall rectangle scalp If the rectangle is tall enough, sell or sell short near the top trend
line and buy or cover near the bottom one.
Watch for rectangles forming as the corrective phase of a
measured move up formation and adjust the target price
accordingly. Rectangle reversals sometimes appear as flat top
formations.
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Guidelines to trade by Head and Shoulders tops
A head-and-shoulders top is a three-peak reversal pattern with a centrally located head priced above two adjacent (shoulder) peaks. The pattern confirms as a valid when price closes below the neckline or right armpit.
Upward price trend Look for an upward price trend leading to a head and shoulders top.
Three peaks The head-and-shoulders top is a three-peak pattern with the middle peak above the other two. The three peaks and two armpits (valleys between the peaks) should be well-defined minor highs and lows.
Symmetry The entire pattern has a symmetrical feel to it. The left and right shoulders should have similar distances from the head; both shoulders should top out near the same price, and be positioned on either side of the head
If a head-and-shoulders top does not resemble a human bust, then it is not a head-and-shoulders top.
Get the
Chart patterns that form well into a price trend may the end of the trend.
Measure rule Compute the formation height by subtracting the value of the neckline from the highest high reached in the head, measured vertically. Subtract the result from the breakout price where prices pierce the up-sloping neckline, or, if the neckline slopes downward, closes below the right shoulder low. The result is the minimum target price to which prices descend. Alternatively, compute the formation height from the highest high to the daily low price in the higher of the two troughs. Subtract the result from the daily high price in the higher of the two troughs to get the target price. This method boosts the success rate and does not
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Guidelines for trading by Ascending Triangles
Ascending triangles are wedge-shaped patterns that break out most often upward. The triangle can act as a reversal or continuation of the existing price trend.
Horizontal top line Price along the top follows a horizontal trend
Up-sloping bottom line Price makes a series of higher valleys, following a trendline. The two trendlines converge
Price crossing Price must cross the pattern from side to side, filling the triangle with movement. Avoid patterns with excessive white space in the center of the triangle
Breakout Can be in any direction, but is upward the majority of the time.
When searching for ascending triangles, make sure price crosses the chart pattern from side to side several times. Price should not be bunched up near the start nor near the end with an empty white hole in the middle
An ascending triangle forms because of increasing demand at lower prices matched with selling at a constant price.
The breakout from an ascending triangle is upward 64 percent of the time based on research completed in 2011 using over 1,600 ascending triangles in both bull and bear markets.
The apex of a triangle is where price tends to form a short-term peak or valley.
Measure rule
Compute the height of the formation at the start of the
triangle. Add the result to the price of the horizontal trend line
(upward breakout) or subtract it from the break price
(downward breakout). The result is the minimum price target.
For trading signals
Wait for confirmation Buy the pair when price closes beyond the trend line.
Sell on measure rule and best forex signals
For short-term traders sell trading signals generate when pair nears the target (see
measure rule). For intermediate- and long-term traders, hold
the pair until fundamentals or market conditions change.
Sell on downward breakout
If you own the stock and it breaks out downward, sell. If you
do not own it, sell it short. Should the stock pull back, that is
another opportunity to sell, sell short, or add to your short
position.
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Guidelines of Descending TrianglesA triangular-shaped pattern bounded by two trend lines, the bottom one horizontal and the top one sloping down, that intersect at the triangle apexHorizontal supportA horizontal (or nearly so) base acts to support prices. Pricesline should touch the base at least twice (at least two minor lowthat either touch or come close to the trend line).Down-sloping top A down-sloping price trend that eventually intersects the horizontal base line at the apex. Prices should rise up and touch (orcome close to) the sloping trend line at least twice, forming twodistinct minor highs.Breakouts and entry for best forex signalsUsually occur on very high volume that diminishes over time.However, prices can also break out on low volume.Price action after breakoutPrices usually move down quickly, reaching the ultimate low in astraight-line fashion. Pullbacks occur about half of the time.price targetCalculate the height of the formation by subtracting the highesthigh from the lowest low. Subtract the height from the value of thelower trend line to get the predicted minimum price decline. Alternatively,draw a line parallel to the down-sloping trend line startingat the lower left corner of the formation. The value of this line whereprices break out of the formation becomes the target price. Forupward breakouts, add the height to the price where it pierces thetop trend line.Best forex trading signalsSince the breakout direction is unknown, always wait for the breakout to occur. After a downward breakout, sell short immediately orafter prices pull back to the triangle base and start moving downagain. Another way to play the formation is to wait for an upwardbreakout then buy the pair .KEY POINT: A descending triangle is a wedgeshaped chart pattern that breaks out downward most often. It can act as a reversal or continuation of the price trend.SMART INVESTOR TIP If price touches the bottom trendline only twice, it should touch the down-sloping trendline at least three times. This is not a requirement, but fi ve touches for many chart patterns works well to help avoid selecting boneheaded ones.SMART INVESTOR TIP Avoid excessive white space between the two trendlines when selecting descending triangles. Price should cross the triangle plenty of times to fi ll the area.KEY POINT: A descending triangle forms when buyers acquire the pair at a fi xed price, forming a line of support. Others sell when the stock becomes overpriced.SMART INVESTOR TIP It is helpful to look at a price chart without any trendlines connecting the pattern boundaries to make sure that what you are seeing is really a chart pattern. Can you draw each trendline a different way, by connecting other nearby peaks or valleys? Will others see the same pattern as you? If there are doubts, then skip the pattern and look for another one.
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Guid lines for trading Symmetrical Triangles
Generate by using Symmetrical Triangles
Two sloping and converging trendlines Price follows two sloping trendlines that join at the triangle apex
Price crossing Price must cross the pattern from side to side, filling the triangle with movement. Avoid patterns with excessive white space in the center of the triangle
A symmetrical triangle appears like an angel fish bounded by two converging trendlines. The breakout can be in any direction.
Breakout Can be in any direction.
Duration Should be longer than three weeks; otherwise they could be pennants.
Symmetrical triangles should be at least three weeks long; otherwise they are pennants. Pennants always rest upon a flagpole (a straight-line price run), so if the pole is missing, the pattern is a symmetrical triangle.
Confirm Price confirms many patterns when the pair closes outside the pattern boundaries. For example, in a double bottom, price must close above the highest peak between the two bottoms; otherwise, it is not a double bottom.
To avoid selecting bogus symmetrical triangles, look for at least three touches of each trendline
when to place
Trade with trend As consolidations, prices usually leave the triangle in the same
direction as when they enter.
Measure rule
Compute the formation height by subtracting the lowest low from the highest high. For upward breakouts, add the difference to the highest high or for downward breakouts, subtract the difference. Alternatively, symmetrical triangles can be halfway points in a move, so project accordingly.
Is Forex a hard work?
in Forex General Discussion
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