The indicator evaluates each bar, not each tick. The last point of the pattern is repainted as the pattern expands. You can have several indicators on the graph with different amplitudes. An alert is displayed when the pattern is formed and also when the break occurs. A small percentage of trading signals can be repainted. It can increase the breakout period. It has a demo version so you can try it out and get to know it, so you can make an evaluation before buying it.
We are talking about an indicator that has been on the market for more than 6 years. User ratings are uneven, with positive and negative ratings. We think that this indicator can be a good option for its combination with other indicators, to complement and have more trading signals, but not for solo use. Save my name, email, and website in this browser for the next time I comment. Forex Academy. As shown below, when a market is trending upwards, the first leg A-B is formed as the price rises from A to B.
The retracement from B to C can be between We will use Fibonacci at this point later on. At point C, the price switches direction again and continues its original uptrend. This leg C-D slopes upwards, parallel with the A-B leg and should ideally be the same length as the A-B leg when it completes. You can sell at point D or just before where the pattern ends, or, in a downtrending market, go long at point D.
After you have identified the pattern, you can then start to look for a trading opportunity at point D. For our example, we will use an up-trending pattern that you would use to place a bearish sell trade. You would approach a down trending market with a bullish buy trade in exactly the same way, by simply inverting the pattern and your trading orders. The first step is to identify point D where the pattern will complete and place your entry there. Place your stop loss just a few pips above point D.
This is because if the C-D leg ends up extending beyond this point, it will usually then continue much further in this direction. One way of deciding where to take profits is by drawing a new Fibonacci retracement from point A to D of the pattern. Note that you can only do this once the D point has already been reached and the original pattern has completed. You can place your take profit order at the If you are unsure of which one to place your take profit at, then you can simply place the profit target at the If the price struggles to break through any one of them, then you can close your trade down and take profit early.
The chart below shows where you would place your sell order, your stop loss and your profit target:. Tradimo helps people to actively take control of their financial future by teaching them how to trade, invest and manage their personal finance. Tradimo operates only under the following URLs: tradimo. All other URLs containing 'tradimo' do not belong to Tradimo and might be fraudulent websites. Risk warning: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment.
Trading in financial instruments may not be suitable for all investors, and is only intended for people over Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. The educational content on Tradimo is presented for educational purposes only and does not constitute financial advice. All rights reserved.
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