Understanding Leverage
On Understanding leverage, I’m going to make an experiment on how the size of the trade is related to risk. And, also, how leverage is the rope where thousands of Forex traders hang. Most people think that if they make 1% monthly using 1 lot per trade, their return to 2% by doubling positions. And they…
Chart Patterns – Continuation patterns
This Chart Patterns – Continuation patterns will be dedicated to classical continuation patterns Flags A typical continuation pattern. After an impulsive leg a pause in the opposite direction. It’s usually a nice entry point after an impulsive leg. Appearance: Flags are fast oscillating symmetrical patterns with a downward slope in bull trends and upward one…
Chart Patterns – Rouding Bottoms and Tops
Rounding bottoms Rounding bottoms and saucers are synonyms. This pattern, that’s supposedly trend reversal is so plagued by “surprise” failures that we hardly may call them “bottoms” at all. More usually, these formations appear during uptrends as a pullback, after which the trend resumes. Bottom Shape: The bodies on the downtrend candle get smaller and…
Chart Patterns – Double and Tiple Tops and Bottoms
Double Tops A double top is the specular image of a double bottom. Price was on an uptrend and made a new local top. Then it pulled back to a local support level, and, after, it rallied again but failed to break the recent top and fell down, breaking down that local support to make…
Chart Patterns – Broadening tops and bottoms
Broadening bottoms Appearance: Drawing trend lines at tops and bottoms of the formation it gives the impression of the silhouette of an ancient turntable’s horn. Identification: Price Trend: declining. Shape: Price seems an oscillating pattern with increasing amplitude. Trend lines: The two trend lines across minor tops and bottoms diverge from each other. The upper trend…