Trading V-Patterns
The recognition of patterns and its body of knowledge of how to react and what to expect helps a trader's success.
Traders are always analysing 'Trends' and 'Reversals.' Their eternal question for traders is 'Can the trend continues?'. Knowing trends and trend reversals are critical for any trader’s success.
Chart patterns classification of 'Continuous' or 'Reversal' patterns helps
traders to identify specific patterns and expect their outcome from current price action.
Traders move prices between key support and resistance areas (a tug of war) as their perception shifts between optimism and pessimism. This movement of price adhering to key support and resistance areas create chart patterns.
Reversal patterns exhibit a total shift of trends from bullish to bearish or bearish to bullish in a single pattern structure.
Examples of the reversal patterns are 'Head and Shoulders, Double Tops and Bottoms.
A knowledge of reversal patterns helps traders to estimate the 'end of trends' to execute trades in a timely fashion for maximum gains. This knowledge also helps traders to time the trades in the opposite direction and to place smaller stop levels.
Here I discuss one of the key reversal patterns ('V Chart Pattern') and present examples of how to trade them.
Please note, all V patterns are classified as a bullish 'V-Bottom' and complimentary
bearish patterns ('V-Top').
V Patterns As the name implies, the 'V' chart patterns have the letter 'V' shape and prices shift their momentum from an aggressive sell-off (Bearish) to aggressive rally (Bullish) in its structure.
The 'V' pattern consists of rapid price action and may not be suited for all
casual investors.
The 'V' patterns are formed when its trend is sharply switched from bearish to
bullish (in case of V-Bottom) or bullish (or sideways) to bearish (in case of V-Top patterns).
Trading V-Patterns.
EURUSD Chart it’s a mirror example of how a V-bottom structure looks like.
How to Trade:
Long Above the breakout Neck Line 1.07868
Stops:
Below the low previous to the breakout 1.04819
Targets:
38% Depth 1.12545
62% Depth 1.15479
79% Depth 1.17569
100% Depth 1.20230
The recognition of patterns and its body of knowledge of how to react and what to expect helps a trader's success.
Traders are always analysing 'Trends' and 'Reversals.' Their eternal question for traders is 'Can the trend continues?'. Knowing trends and trend reversals are critical for any trader’s success.
Chart patterns classification of 'Continuous' or 'Reversal' patterns helps
traders to identify specific patterns and expect their outcome from current price action.
Traders move prices between key support and resistance areas (a tug of war) as their perception shifts between optimism and pessimism. This movement of price adhering to key support and resistance areas create chart patterns.
Reversal patterns exhibit a total shift of trends from bullish to bearish or bearish to bullish in a single pattern structure.
Examples of the reversal patterns are 'Head and Shoulders, Double Tops and Bottoms.
A knowledge of reversal patterns helps traders to estimate the 'end of trends' to execute trades in a timely fashion for maximum gains. This knowledge also helps traders to time the trades in the opposite direction and to place smaller stop levels.
Here I discuss one of the key reversal patterns ('V Chart Pattern') and present examples of how to trade them.
Please note, all V patterns are classified as a bullish 'V-Bottom' and complimentary
bearish patterns ('V-Top').
V Patterns As the name implies, the 'V' chart patterns have the letter 'V' shape and prices shift their momentum from an aggressive sell-off (Bearish) to aggressive rally (Bullish) in its structure.
The 'V' pattern consists of rapid price action and may not be suited for all
casual investors.
The 'V' patterns are formed when its trend is sharply switched from bearish to
bullish (in case of V-Bottom) or bullish (or sideways) to bearish (in case of V-Top patterns).
Trading V-Patterns.
EURUSD Chart it’s a mirror example of how a V-bottom structure looks like.
How to Trade:
Long Above the breakout Neck Line 1.07868
Stops:
Below the low previous to the breakout 1.04819
Targets:
38% Depth 1.12545
62% Depth 1.15479
79% Depth 1.17569
100% Depth 1.20230
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interesting support
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EURUSD rejected the Neckline: 1.07868
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