Fdisk
Please I just want a few pips.
Is that too much to ask?
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Dislikedhttp://www.investopedia.com/articles.../05/032805.asp
this is about Trading Double Tops and Double Bottoms...
"No chart pattern is more common in trading than the double bottom or double top. In fact this pattern appears so often that it alone may serve as proof positive that price action is not as wildly random as many academics claim."Ignored
DislikedI never criticize colleagues. At least not for their market opinions. Everyone is allowed to have one and by backing it up with an actual position a trader should always get a full pardon for possible mistake that he might have committed by taking this trade. However, this investopedia theoretical article about double tops and bottoms seems like a pure nonsense to me. Such vigil approach to classic technical analysis is a direct way straight to disaster. Here are a couple of points I would like to make in support of my opinion:
1. In accordance with classic TA a double top/bottom formation is a reversal pattern. It can only be formed on the very top/bottom of a trend. Therefore the picture#2 in the article illustrating double bottom could be anything but what it is actually supposed to illustrate.
2. In accordance with classic TA such formation cannot be anticipated. It can only be seen after it is fully formed and the neckline is broken. Anticipating a double top formation is almost the same thing as anticipating a rain in Sahara desert. It happens sometimes, but happens so rarely that almost any sequence of preemptive trades is likely to lead to a total account loss even before a single positive strike will take place.
3. Double top/bottom formations in fact are extremely rare in Forex. Being myself a technical trader I took perhaps not more than a dozen of trades based on this formation over 14 years of my trading career and lost on more than a half of them because of false neckline breaks. I cannot see them forming neither every day (like the author states) nor even once a year. But even when actually seen, they should only be traded if supported by other thoughts and reasons.
If someone wants to learn TA the right way I would strongly recommend reading classics such as Murphy’s “Technical analysis of the financial markets”.Ignored
Dislikedoops, forgot this one
2 double bottoms with 4 days difference. first one signals the move, second triggers. lol.Ignored
Dislikedi just brought up this, cause my trading is centered around double tops/bottoms for quite some time now...that was before i even noticed this article...but i have to say, that i also take the "2 B test of top/bottom" labeled by trader vic and the 123 high low labeled by joe ross into what i call double top/bottom pattern..so, for me this is a pattern with different variations and my core approach is to exploit this single pattern
but, i would say, the trick on this pattern is the right "context" of course...
example...lets take a look at euryen on the daily chart... since january, there where three 2b test of top pattern, incl the last one...i bought yen above 15900 acc to my method and was quite lucky..anyway, day in day out, there are numberless DT or DB occuring on any timeframe
anyway, i think that for some newcomer, who is interessted in trading on price pattern, the double top/bottom is worth a close look
of course there are other pattern worth taking a look atIgnored
Dislikedfrom what i can gather is the best trendlines to do the 1-2-3 setup for fx, scrap the first rule of highest high or lowest low and just use his second rule, i.e. just eyeball the lowest low and the swing created before it, exampled in the blue trendline below. What do you think?Ignored