Opening The Bearish Trend Reveals Secret

Opening The Bearish Trend Reveals Secret

There are some typical things that every beginner trader does. First of all, the trader tries to find an ideal entry to the market. Then, the studying stage begins – contrarian and wave theories, Japanese candlestick reveals, oscillator divergence and more others. Newcomers believe only in everything that oscillators and indicators show. All decisions and strategies are made on the base of indicators or oscillators, and every new one necessarily works with previous.

Beginners tend to make mistakes. One more is neglecting the most important indicator/oscillator – price. Are you shocked? But it is not a lie! However, the price is the only indicator takes into account all the factors: political, geographical and economic, inexperienced traders do not pay enough attention to it and do not understand how important it is.

For making money online you need to know the most effective market entry. It is, of course, trend reversal. The market trend first goes in one direction, then the direction is changed and the trend moves to the opposite side. And today we will focus on the most important, in our opinion, reversal patterns, which are: head & shoulders, double top and triple top.

Head & Shoulders

The majority of forex masters depend on this pattern. It is based on a trend movement and shows when the direction of the current trend changes and another one is in the establishment stage.

Trend Reveals Secret

>>Visit our TOP recommended signal system HERE<<

Spotting Head & Shoulders

  1. A trend should exist and there head & shoulders should not differ to have a reversal.
  2. Consequent higher tops and bottoms create a prevailing uptrend.
  3. There is a signal if the volume is available.
  4. There is a warning if the decreased volume is available and an upwards move to the Head.
  5. A potential reversal can be seen when the Head is higher than the right Shoulder.
  6. A downtrend beginning (after the uptrend is about to end) can be seen when there is a significant close below the neckline, and if it is available, with increased volume.
  7. You can project the pattern height to the breakout point of the neckline for calculating the minimum price target.

Head & Shoulders trade

>>Visit our TOP recommended signal system HERE<<

Triple Tops

The Triple Top is known for its three tops, which are almost equal, and a great close below the formation bottom. If you want to have a valid Triple Tops, you need to have a break below the support. It is not enough having the three tops on their own!

Spotting Head & Shoulders

>>Visit our TOP recommended signal system HERE<<

Spotting Triple Tops

  1. Before you start to look for a reversal, it is essential to have an existing trend, to be specific, an uptrend.
  2. Consequent higher tops and bottoms create a prevailing uptrend.
  3. There is a signal if the volume is available.
  4. If the decreased volume is available and signals are too weak to move higher, the upwards moves to the resistance area.
  5. The resistance area is made up of equal or almost equal tops.
  6. A downtrend beginning (after the uptrend is about to end) can be seen when there is a significant close below the bottom, and if it is available, with increased volume.
  7. You can project the pattern height to the breakout point for calculating the minimum price target.

Spotting Triple Tops

>>Visit our TOP recommended signal system HERE<<

Double Tops

There are two signals when we are talking about the Double Tops. The first one can be shown when the trend is about to end, it is a signal of weakness. It can happen during an uptrend. In this case, when supply is exceeded by demand, a previous top can be surpassed by the current one. The second signal can be seen in the opposite situation when the previous top can not be surpassed by the last one. When the prices reach below the support area there is a reversal.

Double Tops

>>Visit our TOP recommended signal system HERE<<

Spotting Double Tops

  1. It is essential to have an existing trend, to be specific, an uptrend.
  2. Consequent higher tops and bottoms create a prevailing uptrend.
  3. There is a signal if the volume is available.
  4. If the decreased volume is available and signals are too weak to move higher, the upwards moves to the resistance area.
  5. Tops are equal or almost equal.
  6. A downtrend beginning (after the uptrend is about to end) can be seen when there is a significant close below the bottom, and if it is available, with increased volume.
  7. You can project the pattern height to the breakout point for calculating the minimum price target.

Spotting Double Tops

>>Visit our TOP recommended signal system HERE<<

To Sum Up

If you want to get the easy income you should not look only at oscillators and indicators because the prices are more important. Also, do not experiment only with candlestick reversals and oscillator signals, pay attention to bearish or bullish trend reversal patterns. The higher accuracy can be reached by combining all tools, use available volume with oscillator analysis together.

 

 

 

Google+ Linkedin

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

*