Classic Chart patterns and how to trade it (READ)
Hello Traders. Welcome to this Post about How to properly Trade Chart Patterns. In this post first post we will talk about how to find it. Make sure to follow for more content
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How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong drop in price or rally in the price. Understand that behind every drop and strong mouvement someone is behind leaving a footprint. that's what we call the market flow . JUST LIKE THE water from the river it's easier to swing with the direction rather to swing and fight against it. The same occur with chart patterns , You must priorise continuation patterns.
When to Know when we have a valid pattern?
The perfect combination is : MARKET FLOW + SUPPLY DEMAND RETEST+ PATTERN = HIGH PROBABILITY TRADE.
Rules:
When you have a very strong bearish monthly structure , supply levels tend to be accurate a stronger. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When you have a very strong bullish macro structure , demand levels tend to be accurate a stronger. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
In that way , we like to combine supply and demand market flow and chart patterns.
→ If you want to execute :from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed or the sentiment, then a pullback into a supply level in a strong downtrend structure is valid and so the continuation pattern can be rewarding
.
When a chart pattern is not accurate ?
❗The purpose of continuation patterns is to always try to take it following the market sentiment. There is no accuracy when trying to fight against the river . For example trying to take a double bottom in a downtrend is not likely to work , same way happens when we are trying to take a demand retest in a downtrend structure. that's what we call LPT LOW PROBABILITY TRADES
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
-----
How to Draw it ?
You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong drop in price or rally in the price. Understand that behind every drop and strong mouvement someone is behind leaving a footprint. that's what we call the market flow . JUST LIKE THE water from the river it's easier to swing with the direction rather to swing and fight against it. The same occur with chart patterns , You must priorise continuation patterns.
When to Know when we have a valid pattern?
The perfect combination is : MARKET FLOW + SUPPLY DEMAND RETEST+ PATTERN = HIGH PROBABILITY TRADE.
Rules:
When you have a very strong bearish monthly structure , supply levels tend to be accurate a stronger. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
When you have a very strong bullish macro structure , demand levels tend to be accurate a stronger. By other side we like to trade the first retest. The more a zone is being tested the less accurate it becomes.
In that way , we like to combine supply and demand market flow and chart patterns.
→ If you want to execute :from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed or the sentiment, then a pullback into a supply level in a strong downtrend structure is valid and so the continuation pattern can be rewarding
.
When a chart pattern is not accurate ?
❗The purpose of continuation patterns is to always try to take it following the market sentiment. There is no accuracy when trying to fight against the river . For example trying to take a double bottom in a downtrend is not likely to work , same way happens when we are trying to take a demand retest in a downtrend structure. that's what we call LPT LOW PROBABILITY TRADES
I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
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If you want to learn our strategy:
🟡 www.airforexone.com/ebookv5
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OTHERS
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If you want to learn our strategy:
🟡 www.airforexone.com/ebookv5
If you want to join our vip discord:
🟡 www.airforexone.com/vipmembership
OTHERS
🟡 linktr.ee/airforexone
