DOUBLE BOTTOM It is a reversal pattern and it forms in a Downtrend It consists of a lower low followed by a point that is unable to make a lower low, after that price will start making higher lows instead of lower lows. This is a sign that the down move is over and price has the potential to reverse to the upside. HOW TO TRADE IT: This pattern usually...
Simple explanation about trend, support and resistance. A trend can move in two directions. An uptrend defined by higher lows and higher highs, or a downtrend defined by lower highs and lower lows. Then there is the sideways phase . As the name suggests, there is no trend here. The trend line will be pulled upwards along the significant lows during an...
In my view, there is nothing fundamentally important about a candle closing above or below a certain price. Yet, I still regularly use a candle close or open to describe a trading idea, and for good reason. To start with, most people clearly understand what I mean if I say something like 'If the weekly candle closes above 8100...' but the significance of a weekly...
223-223 is seen to be a stiff resistance. Price rejected multiple times from the zones. If breaks with conviction, then only on the buy side for further target of 245-250 zones. Both time rejection candles seen near price zones.
I introduce the Candle Plot MTF indicator. Enjoy.
FX_IDC:EURINR First of all, the most important thing to remember is the support and resistance levels are not exact numbers. Often times you will see that market broke the support/resistance level but in reality, it was just testing that level. To filter out these false breakouts you should think of support and resistance more of as "zones" instead of actual...