Multiple Naked Trade Reversal Pattern
Most traders are always trying to find a turning point to take a trading position in the market. Some are based on support and resistance, some use supply and demand levels, some are based on market psychological levels, some use patterns, algorithms etc.
Reversal or trend reversal from up to down and from down to up, always attracts trading interest. There are those who try to project that the price will reach here, so traders will buy or sell. Some predict prices will take action. The price has reached major resistance or support, this should be the smallest risk, if a trader enters the market. Traders will wait for the breakout to make a decision etc.
Trends
Trend is a tendency for prices to move up or down. Trend consists of several stages according to Elliot Wave. However, there is no trend that moves up straight up or straight down. But exactly where do we have to make entry decisions or enter the market? Under what circumstances should I exit the market, both profit and loss? What is a good reversal condition to make a decision as the beginning of the trend? In the following we present multiple reversal patterns, which occur in a series of price action battles between sellers and buyers. (you can say this is a pattern in the area of accumulation and distribution of naked trade).
Multiple Reversal Pattern
While general and general reversal patterns are easy to identify, not everything goes as smoothly as we sometimes expect. Single reversal patterns in the form of pinbars or plurals such as engulfing, morning-evening star are sometimes not immediately valid and sometimes fail. This reversal pattern that is not valid will become the level of accumulation and distribution and become the Price Acceptional Zone area.
It can be said from a series of increases, finally a resistance emerged from the seller, this is a candle indicating from the seller that the seller has entered the market or the buyer is starting to have doubts about maintaining their buying position. In small frames or minor trends this can happen quickly but in large frames and major reversals this rarely changes suddenly. This can be likened to how to turn the bow of a small ship with a cargo ship, the radius of change and position will be very different.
From a series of declines, finally a resistance emerged from the buyer, this is a candle indicating from the buyer that the buyer has entered the market or the seller is starting to have doubts about maintaining the trader's selling position. Will prices go up soon? apparently not, the price went through a period of consolidation that was quite tough until the dominance of the winner emerged from a tough battle. Hopefully traders can find more patterns in market trader research and reviews.
Comments
Post a Comment