| manalfreen | Дата: Пятница, 28.12.2018, 17:34 | Сообщение # 16 |
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| Bump and Run Reversal Bottoms and fx trading signals
Bump-and-Run Reversal Bottoms and trading signals
The formation looks like a frying pan with the handle on the
left sloping downward to the pan. After a deepening decline
that takes prices into the pan base, prices level out and
eventually soar out the right side.
The handle forms a down-sloping trend line that approximates
0–45 degrees (but this varies with scaling). The handle portion
of the formation is called the lead-in as it leads in to the bump
phase. The lead-in height measures from the trend line drawn
across the highs to the low (not necessarily the lowest low) of
the formation. Select the widest distance from the trend line to
the low, measured vertically, in the first quarter of the
formation. The duration of the lead-in should be at least a
month, but varies depending on the situation.
Bump phase
The bump is analogous to the frying pan base. The downsloping
trend line deepens to 60 degrees or more. Prices drop
rapidly then level out and turn around, usually forming a
rounded turn. After the turn, prices move up and sometimes
pause at the 30-degree trend line before moving higher. The
bump height, as measured from the trend line to the lowest
low, should be at least twice the lead-in height. Strict
adherence to this rule is not required, but it serves as a good
general guideline.
Uphill run Once prices lift out of the bump phase, they begin an uphill
run that carries prices higher.
Measure rule. After properly identifying a BARR bottom, you will want
to determine how profitable is a trade likely to be. You do that using the measure
rule. I changed the measure rule from a computation to simply the top of
the chart pattern. The highest high is the target, and prices reach the high 64%
to 68% of the time.
Wait for confirmation. The confirmation point is when price closes
above the trend line formed during the lead-in phase. Should the price close
above the trend line, buy fx trading signals .
Sell at old high. I have discussed how often a fx pair showing a BARR bottom
stops near the old high (which is the start of the formation). Place a sell
order near the price level of the old high. That will keep your profits intact
should the pair then turn down. If you are reluctant to sell your holdings, why
not sell half when the stock reaches the old high, then see what happens?
Stops. As always, place a stop-loss order 0.15 below the nearest support
zone. Move the stop upward as the forex advances. That way, when prices turn
down, you will not lose too much. Only paying taxes is worse than riding a
forex up and following it all the way back down.
free forex signals presents daily free forex trading signals live via SMS , email and on www.freeforex-signals.com
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| manalfreen | Дата: Понедельник, 31.12.2018, 21:08 | Сообщение # 17 |
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| Cup with Handle and buy trading signals
Cup with Handle and generate buy trading signals
Cup with Handle is Looks like a cup profile with the handle on the right
brief review of the guidelines I found important.
Rise before cup is at least 30%. As I was selecting cup-with-handle patterns, it became apparent that
locating cups during an uptrend was important.
So I used O’Neil’s minimum rise to the left cup lip of 30%. To measure this, I applied the same method as
for finding the trend start and reviewed those that fell short of 30%. If the trend start using
the mechanical method was shy (usually by just a few percentage points) of the
required 30% but the price trend appeared longer on examination, I accepted
the pattern. Just 15 of 471 patterns (3%) were in this category.
U-shaped cup, handle duration. I removed all V-shaped cups and kept
the U-shaped ones. I am not sure about the performance effect of this. Also
removed were those cups with handles shorter than 7 days (5 trading days). A
cup without a handle is a rounding bottom. I considered the handle length as
the distance from the right cup lip to the breakout.
Cup duration. I used a strict interpretation of O’Neil’s cup duration.
Removed were short cups (fewer than 7 weeks) and overly long ones (over
65 weeks).
Handles form in upper half of cup. I used a more lax interpretation of
where the handle forms on the cup. In other words, I visually inspected the
cups to be sure prices in the handle drifted no lower than halfway down the
cup. I removed those drifting lower (include all with downward breakouts).
When measuring distance, use an arithmetic chart
Cup lips near same price. Finally, I selected cups with lips (tops) at
approximately the same price level. Cups with uneven lips are better classified
as scallops.
determine take profit of forex trading signals
Measure rule Compute the formation height by subtracting the lowest low
reached in the cup from the high at the right cup lip. Add the
difference to the high at the right cup lip and the result is the
target price to which prices will climb, at a minimum. Only 50% of
the formations rise that far in a bull market; 27% hit the target in a
bear market. Use half the cup height to get a more realistic price
target (met 76% of the time in a bull market; 55% in a bear market).
free forex signals presents daily free forex trading signals live via SMS , email and on www.freeforex-signals.com
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