The classic characters of the continuation and trend reversal are always of great importance for the functioning of the dealers.
A retailer can come across the following figures.
Forex Free Tips Story
· An extension of the trend figure (continued) indicates that instead of the common trend correction (recoil). Eventually, an agreement must be open about the trend. For example, under the condition of the trend "bull" and lowered the recoil, you have a business to "buy" and tried to open"Surf" with the new wave trend.
• The number of trend means that a currency pair reached its peak, after which the opposite happens. From the top, there is an agreement out against the current trend direction. For example, the top trend of the bull, you have to "sell" open to a deal and tried to see ("catch") the first wave of new trend.
The reader can understand the idea?
For example, the opening of a H4 chart, may be as follows.
1. AExtension trends (continued) shows that an operator must wait until the end of the correction and then open a business along the trend (the same figure, the extension of the trend (continuation) is called). Dealing with the trend in this way you can earn several hundred points.
2. Find the figure of the turnaround, you can earn several hundred points higher - the work in the opposite direction.
3. Is part of the recoil (the number of newTrend Extension (continued)). Opening an agreement at the summit of the recoil, it opens a dealer agreement on the trend. A trader can run indefinitely for this technique.
At the same time, not the readers of "some things" embarrassing?
For example, 19 of the 20 traders who lost their deposits, was also examined religious figures in the tend continuation / resolution.
The author wishes to win the reader's attention to the three main problems. The best solution isMaster V-based Forex Trading system approach in part paid figures continue the trend and reversal.
1. Classicists of Forex technical analysis to describe all shapes of continuation and reversal of that fuzzy (vague) sense! As a result, these figures are "visible" only after the end of the movement. However, a provider of business registration numbers like this at the beginning of the movement.
For example, E. Neiman, finishing theDescription dozens of such figures, made after completion. He recommends looking for trend data in situations where they are missing. According to this author, this would mean only the imagination for any practical purpose.
By the way, strikes me Endnote Neiman is very cynical. I wonder how E. Neiman was able to identify trend figures in his theory of a "specific" to present. As a result, a professional (a party!) Can not distinguish whether thisThe numbers are real or imaginary - that is, the merchant is not he or she begins the development trend of figures when they are away. You can imagine that in geometry, a triangle and square so that they look as indistinguishable as described? In science it is impossible. But with Forex, in its current state is on the agenda.
2. All the classics of technical analysis examined all data, extension and cancellation trends on the chart andwithin the same size (A. Elder is the only exception). However, there are an infinite number of periods (time-profile) - M1, M5, M10, M15, M30, H1, H4, H8, D1, etc. Each time period is part of a time profile in a larger scale. In each curve, there are several types of trend will continue or reverse. Often, these figures are inconsistent.
This means that the opening of a business (short or long) with the same currency pair, a tradersee:
· A figure of reversal in M15;
· A figure of trend continued in H1;
• A triangle D1.
Therefore, what companies do? The reader should notice is the right time for decision. That is, an entrepreneur has the time, they must determine the points of confirmation and cancellation of planned offerings for the calculations of the trader. In addition, an operator must be quick enough to install a stop (stop).
The reader should notethe fact that a trader deals with these situations in most of the hours of trading.
3. None of the "classics" of Forex has tried to present this issue of analysis of other tools
· Elliot Wave (the figure of the trend is the end of the fifth wave, the number of trend continued a wave of prison, etc.);
· The trend oblique channels;
• The levels of support and resistance;
· Run in DCLane currency pair movement;
• Fundamental analysis;
· The Fibonacci levels, etc.
Forex, the movement is united. Therefore, it should be possible to introduce the techniques of analysis appropriate to the market as a whole unit. In the development of master forex V TS, I went from this idea.
The examination of the three above-mentioned problems as a unified whole, the reader why 95% of traders lose their deposits to understand.
All the classicsFigures of the extension and the turnaround has been studied by J. Murphy, A. Vecchio, E. Swagger, E. Neiman and other authors. Subsequent developments have been copied to the appropriate Forex analysis in all manuals.
The inversion of classical pieces are as follows
· Head and shoulders;
• Three parts upper and lower compartment;
· Double upper and lower parts;
E V-shaped top and bottom (sometimes they call it"Spike");
Round model or saucer;
· Diamond.
The trend extended classical pieces are as follows:
• The Triangle;
• The flag;
· Pennant (Pennant, trailer);
° set wedge (wedge, Gore Gore);
· Rectangular.
We are now trying to find Cardinal notes in the figures of the turn from the point of view. Our goal is to eliminate all internal contradictions, to deconstruct in a rowDealer error. With the resolution of these contradictions, the reader can learn to recognize
• The end of the movement along the trend of age;
· The beginning of a new trend.
The model of "head and shoulders reversal
Graphs of "Technical Analysis of Futures Markets: Theory and Practice" by J. Murphy can serve as examples corresponding.
(To see the photo to see notes at end of article)
J. Murphy describes the "head and shoulders" figure infollows. In Figure 5a from its single book can see an example of "head and shoulders" pattern in the case on the market. The left shoulder and right (A and E) are approximately the same level. The "head (high)" (C) is above each shoulder. We see that after each peak is accompanied by a reduction in trade. The model should be achieved when the closing price under the direction of "neck" (line # 2) is set. The minimumprice target is the vertical distance between the "head" to the line of "neck" - to start from the point of breaking through the "neck" lines down. In the course of gradual ascent, the return to the level of "neck" is possible. However, prices may not have this line.
"Head and Shoulders" pattern of inversion (mirror image that will appear during the change of "bear" trend "cops" a)
(To see the photo to see notes at end of article)
The rules of workA. Old ("How to speculate on the stock market and win") are as follows.
1. There may be some decline in trade volume intersection of the trend line and divergence between price and technical indicators. See the "head" or the right "shoulder" in these conditions, you must sell.
2. After the "head" is the recession of the line of "opening (mouth). If a dealer still holds the position, must install a (security) measures of precaution in the context of" opening(Mouth) "line.
3. In general, a lift of the right "shoulder" with small volumes of trade and technical indicators suggest that the market is low activity. This increase of the right "shoulder" is the last real opportunity to benefit, out of the increasing trend. In achieving the right "shoulder" technique index values often greater than in the "head". However, these values do not reach the maximum, available in the left "shoulder". Heading in the right "shoulder", the dealer mustSet the "Stop" at peak "head". The "stop and reverse" the order should be. If the job is done, the position is closed. Then he opened in the opposite direction (see "Baskerville", "Signal Dog).
4. If the 'opening (mouth) "line had been crossed, is to" sell "the recoil with a small volume of a perfect opportunity for the'. Precaution (safety) measures should be put on something "opening (mouth)" line.
E. Neiman reported disadvantages of the model"Head and shoulders" reversal shows (see his "Trader's little dictionary). This author notes the following.
1. For pity's sake, before a retailer is the "head and shoulders" formation of the classic character to be convinced that the important movement of the price will already be finished.
The reversal and the trend towards a back wave can be because of fuzzy criteria, the book by E. Neiman s' presented to flee. The dealer author comfort in a very original way.He says that this is a valuable experience with the new trend of the movement. Surely by now the dynamics of prices is much less intense. But to know which direction the trend, this is more or less faith in their position.
2. There is a danger to the number specified in most cases it is actually to be seen. To avoid this, it is essential to verify the conclusion about the character of the volume indices.
Way, the losses traders at workwith the "head and shoulders" figure of inversion caused by the recommendations made classical technical analysis.
1. Under this model can be a deal disclosed only when a substantial part of the movement along the new trend (backward) direction is already over.
2. "The volume index is missing the manual of the Forex market. Therefore, the main filter has not done so well. In J. Murphy, E. Elder, Swaggerand E. Neiman, divides the true conversion (the "head and shoulders") and false (not confirmed) a.
3. E. Neiman says that after missing a serious movement in the backward direction, an operator can finally see the new trend. This theory is controversial and often defective.
a). On the one hand, the "head and shoulders" reversal of the fifth order wave-type - in this case E. Neiman is right.
b). On the other hand, the "head and shoulders reversalmeans the end of trends before and 3 Waves. After its end, the stop-loss is in action. Otherwise, the deposit will be lost forever. As is obvious, E. Neiman do not understand these peculiarities. He simply tries to reassure losers (or conscience) with the steps above (imagine, for instance, figures and fantasy).
4. A. Elder has introduced a new character - that the continuation of the trend (renewal). And 'the Dog "Baskerville", "model. How lame(Abortion) version of "head and shoulders", is for the following case. Despite all the signs of "head and shoulders" formation, which can often be a currency from the "head" to break. So
• The "head and shoulders" pattern formation is repealed;
• The first trend continues.
"Baskerville" dog "of the model: the cancellation of" head and shoulders "figure in 'Basics of stock market trading", A. Elder explains the origin ofSamples are available. In the history of the famous detective, Sherlock Holmes noted that at the time of the offense, the dog does not bark - that is, the new dog, the murderess. Therefore, it was purely a family matter. So the mystery was solved.
Analog is the lack of any action, as the signal (the absence of the "bark" to be expected!). When to "bark" of the market has refused to answer very clear message we get, "Baskerville", "dog model: the market and has refused to reverse the raceup.
(To see the photo to see notes at end of article)
The "head and shoulders" pattern in V-Master Forex Trading
The "head and shoulders" figure of inversion (the inverted head and shoulders ") is described in detail in the Master V-Forex Trading Academy.
The author offers suggestions for independent research for the answer to the problem, analysis of unresolved technical classic. These requests are for those who can not take place during specificMaster Forex Trading Academy-V on the Internet.
1. The "head and shoulders" reversal is a combination of figure (system) of horizontal and inclined channels, described in detail in earlier parts of this book.
2. One can understand the nature of the data by adding 2 lines in the charts and Neiman Murphy. This opening allows an agreement at the beginning of a turnaround but no further.
3. Other analysis tools, Forex (but notTrading volume), confirm the correctness of the reader, the solution: s
· Elliott Wave Theory;
• The levels of support and resistance;
° level of Fibonacci;
• The levels of the helical grooves;
• Street currency pairs;
· Achieving the goals of the movement before the upper part (the "head");
• The time required for the formation of "head and shoulders" figure;
Correlation ° between the differentTime frame (4 types of trend), etc.
The problem (test) made # 1 in the Master V-Forex Trading Academy. There is a table of Neiman's book. The reader should try to understand what is right and wrong with this picture.
Chart. The problem (test) # 1 (to see the photo to see notes at end of article)
This is a perfect test. It allows you Forex know your level of understanding. You have to find the error E. Neiman in his image of "head and shoulders" madeReversing the picture. Otherwise, the reader will also confuse the true reversal of the fix common trend. Respectively, the reader is inevitably lost deposit.
The error in the rankings J. Murphy 's (the "head and shoulders" reversal and "head and shoulders" numbers upside down). Not without reason, the author is the data in graphic form, tables of actual contracts, did not submit shown.
L '(test) problem in post # 2 Master Forex Trading VAcademy.
Because of these errors, the actual chart the course of the business has the following form (see Figure 2.14 for "small dealer Encyclopedia" by E. Neiman) shows.
Chart. The problem (test) # 2 (to see the photo to see notes at end of article)
*** The circle represents the area of intersection of the two signals. The "head and shoulders" figure shows the reverse trend. The "false break" through the support line for the channel makes the channel currentDirection. It may be a victory "bull" trend. Many traders - that the situation at this time misestimated - have lost their money. Under these conditions, the best solution would be to wait until both signals to see the situation clearly above or other confirmation.
The reader must try to recognize the error independent of E. Neiman in determining the "head and shoulders reversal that figure. E. Neiman has not even solved this problem.
L 'Triple and double character "top-down" of the turnaround
The formats of the following books can serve as examples for such models.
· J Murphy. "The technical analysis of futures markets: Theory and Practice."
° E. Neiman. "Trader's small encyclopedia.
(To see the photo to see notes at end of article)
Recognizing the triple and double up-down "figure
After similar to J. Murphy, the number "triple top" as the "head andShoulders "pattern (see Figure 5.4a in his book). The only difference is that all three peaks are the same plane. Each of the peaks below due to a decrease in the volume of trade must be accompanied. The model is complete when the power level of the two price declines (recessions), which is accompanied by an increase in volume of trade. The process of getting the price is driving. following First, measure the height of the sample. more the value obtainedshown up to the starting point break-through. Usually after the break-through occurs, the price movement back toward the baseline.
Figure 5.4b from the book by J. Murphy s', the "triple bottom line" model is displayed. It 'similar to the "head and shoulders" pattern reverse. The only difference is that all three standards are the same plane. This is a mirror copy of the model "triple top". But in the case ofbreak up, the volume of trade is more important than the role of confirmatory factor analysis.
A. Elder says that the "double top" pattern is formed when the prices back to the previous increase to the maximum. Similar to the "double bottom" pattern occurs when prices again, to minimize the previous year. The 2nd Highest (or minimum) may be slightly higher or lower than the previous one. This fact often beginners analyst embarrassing.
Double Up and Down "often determined by using technical indicators. These are often caused by the divergence of the "bull" or "bear", accompanied trends. For a dealer is one of the best ways to buy a double bottom and double the "up" for sale.
(To see the photo to see notes at end of article)
E. Neiman pointed out the disadvantages of such a reversal of numbers. The use of triple (and especially double) "at the top and bottom of the model, you may get too many false signals. You can free-standingonly with the help of parallel analysis of convergence / divergence. RSI oscillator is taken as an example.
The problem (test) # 3-V Master Forex Trading Academy
1. According to Neiman, there is strong signal - the number of "head and shoulders, and" triple top "(" bottom ") There are also signs of moderate strength. - The" double top. "
The task is the difference between the "plans of double and triple" in the cases of use of different instruments to determineForex Analysis (oblique channels, moving averages, etc.).
2. Can a single signal from the false trend change with the help of
• The volume index is not used in the forex market manual;
· RSI oscillator (not the index of the home, but that the trend)?
3. What is the difference between the "head and shoulders" figure and "double or triple top (bottom)? Here the reader must take into account that, according to Elder, who take2. Maximum (or minimum) may be slightly higher or lower than the previous (?) - The fact that analysts often awkward beginners.
However, the reader must think about what the term implies "easy". Suppose that the above is broken. In this case, a farmer from the market or open a business? If any of these terms break the top as true or false? Or rather, an agreement may be opened by the trend or against?
The reader must tryindependent to answer these questions and to know where an error of old topics. This error produces a series of errors its operators. Without the right answers, it is impossible to win a regular profit on Forex.
Inspiration from the Master Forex TS-V for the years of individual training
The digits of the type "head and shoulders," are "Spike" and "diamond" extreemly intense signals.
• Number such as "(below) triple top" and "double-top (bottom) areintense signals.
You must try to understand the difference between the numbers of these two categories and their characteristics.
• The municipality is the essence of repentance, inherent in all shapes.
• The difference between the numbers is to do the reverse.
Realizing the reversal in its nature, you can see the end of the movement in that direction.
See reverse side of the module allows the trader to correctly identify the new trend or waveThe sharp correction in the direction of the reverse direction (1-2-3/abc).
Such a conception as "light", is used by Elder, is unacceptable in Master Forex Trading System-V.
A coin is neither break the technical level to break support and resistance or money is not - from a distance strictly defined. The objectives of the corresponding (1, 2, 3, etc.) are integrated into the host computer Forex, the organizer of the game universal service.
See continuation of this article with the name of"Forex Secret. Turnaround Classics figures in analyzing the foreign exchange market (Part II)."
Note: The full text of the article and photos of examples you can see on http://masterforex-v.su/002_008.htm
Forex Secret - Turnaround classical figures of technical analysis in the foreign exchange market (Part I)
