the "VEE" chart (my observation)

hi all.
(Sorry i come from non-english speaking environment)

I notice this pattern on EU chart lately..
and this is very frustrated things
It can be a good thing and can be a very frustrated things too

This appear on any TF, from 1 minute, 5 minute, to 1 hour, 4 hours chart...
What the price do is it move in a shape of big "V" (hence i name it "vee"), either V or inverted-V (^)

(please correct me if i am wrong) In Fibs, this would appear like 100% retracement, or in goodman wave theory, it is 100% retracement too.. i not sure why it appears so often lately.. Maybe someone can share ways to trade this?


Frustration
What is most frustrated thing is, if i in wrong direction in the beginning of the "V", i will be taken out on my SL

But on the other hand, if i do not set any SL, the price will go back to there at end of the day, and i would not have any loses.

( Setting a very large SL doesn't help too, cause if the price really move other way, i will have a huge loss)



The Good?
If we have some way (Maybe anyone here can share?) to trade both way of the "V", than it is really good earning. I not mean catching the tops and bottom, just in middle.

Trading the "V" in middle, both way, could yield 200pips, or even 300 pips in a single day... in 0.1 lot of xxxUSD, it will be few hundred USD earning, in a same day...that is very tempting.



So just like to share here.. and we all can discuss
anyone trade both way of the "V" shape?



(Attach here is H1 and H4 chart showing lots of "VEE" )

problem with such a pattern is: you will know that price built a "V" pattern after the fact. Meaning you have absolutely no clue when such a "V" pattern is created.
Don't waste time on things that cannot be predicted with certain odds. However, if you do some studies and find that after this or that event, or that in an uptrend, or that at certain times it is more likely that such a V occurs, then it might be viable.

However, get some reserach done, just looking at the charts won't get you anywhere.

It's not that unusual, actually it's common thing. Remember, market does not care about fibo things, if it's lack of liquidity they'll move to another place more liquid. The V shape you've observed it's happen when "market maker" drive the herd into wrong direction and trapped, when people get trapped fear will take control so they immediately change direction, that's why more herd will tricked with "fake trend". At the right time "Big Boys" already waiting them in the other side to take their liquidity easily, when it happens with typical Big Boys pressure power, price will reverse again.... That's all about it, if you understand the basic supply-demand and human psychology you'll understand it clearly why it's happen.

I have to agree with you.. this is kind of descriptive things.. like the e-wave.. we only know .. after it's happen

I will get some research done and see if i could understand something that happen that time that could influence the price

Yeah.. these few weeks this is very common. I agree with you, market does not care about fibo nor elliot wave nor other indicators.

Seems like the market makers with lots of funds can do a lot of things and influence the market to their favor....

Highlight each of those line segments and a center point, or 50% "fib" for which you draw a horizontal line from a certain % point, appears on each. The V's are merely two of these "trend centerlines" (as I like to call them), and increase the chance of the center points working.
Of course, substantial PA is necessary to make this work.

You may also want to search for the "W" formation or check the M & W trading thread.

In this example, the first V really set the formation to work: