FOREX Folding meter
Pattern Folding meter
Pattern Folding meter is sometimes called the "3-stage trend line" - this is a very simple strategy forex (FX model), which is used in almost any currency pair and fits perfectly for all time intervals. This model is signal a trend reversal , so it is necessary that it formed before taking any action.
When trading forex, fans of "catch" the big trend is very often the time waiting for a trend reversal, but it sometimes happens or does not ... And then when you just briefly otvlecheshsya - and it turns out to here as here, this is the trend reversal. Only manages his words, but sometimes it is too late to enter the market. Since movement through the third trend line is so fast that sometimes it is just not catching up.
But oddly enough, identifying patterns of data breaches, has been found a very simple geometrical structure (pattern), which was not mentioned in any of the books on technical analysis ( graphic analysis ). So she was called - " folding rule " (folding rule).
Using this pattern of "folding rules" - you can enter the market in the early stages of a trend reversal.
And so to enter the market to sell (short position) on the pattern of folding rules must:
1) draw a trend line (T1) on the grounds of 2 recently-formed depressions (areas of support).
2) Next, the market usually begins to develop momentum, and we will then, as it is formed - hold 2nd trend line (T2) on the grounds of two relatively newly formed basins . Very often, we can clearly say when it's time to draw a trend line (T2), because the market will move quite sharply from the trend line (T1). After the market will adjust, but did not reach the trend line (T1), it's time to add the following line.
3) The final stage of the model - when the market starts to pick up speed and it is often the movement of exhaustion, and then we build third trend line (T3) . This movement has the same characteristics as the line T2.
After all these constructions - you can clearly say that we are willing to trade.
When the trend line was broken at the cost of T3 - we enter into the market, opening up a trading position for sale at the break of the trend line and the closing price of the candle below the trend line. Our strohovochny stop should be placed above the largest peak - the top of the upward movement. After that you should set a goal to achieve a profit - and this goal will be to the trend line (T1).
You may be amazed at how often this support is formed on the trend line (T1). But after we closed the deal with the return on a trend line (T1), we still observe what's going on at the foreign exchange market. If the market still finds support for this trend line and begins to rise again, we can wait until it has another opportunity to sign a short trading positions. If the market price will continue to fall through the trend line (T1), then the signal is strong enough indication that all of the previous trend has a tendency to completely turn around, and we should consider re-enter the trading position for sale .
Log in to buy at the pattern of folding rules:
1) draw a trend line (T1) on the spikes of two not so long ago formed the peaks (of resistance).
2) increases the market momentum, and we then spend 2nd trend line (T2) on the spikes of two more have recently formed the peaks (of resistance).
3) The price in the market is accelerating, and this movement is very often the movement of exhaustion - we spend third trend line (T3) .
After all constructions - we are ready to close the deal for the purchase.
When the trend line (T3) was broken at the cost and the price closed below it - we can conclude the deal in the long side (ie the purchase). Our safety stop-loss order is placed below the last minimum of support - which is the basis of the past downward trend. Set profit target (Teyk-profit) - the trend line (T1).
the same way as in the cases of the sale of pattern "folding rules" as soon as we exit the market at a profit on the trend line (T1), we still continue to monitor the behavior of prices in the market - what happens next. If the price finds resistance at T1, and continues to decrease, we wait until the formation of the next opportunity to enter a trading position to buy. If the market continues to break through the resistance trend line (T1), then this breakthrough is a strong indication that the whole trend tends to unfold in the near future, and we can should consider another opportunity to re-enter the trading position to buy .