Triple Bottoms And Best Trading Strategy

Discussion in 'General Trading Discussion' started by best forex, Oct 30, 2018.

  1. best forex

    best forex Member

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    Triple Bottoms and best trading strategy

    Published by bestsignals on October 27, 2018

    Downward price trend
    The short-term price trend leading to the triple bottom is down.

    Three bottoms
    Three minor lows are involved in a triple bottom. Sometimes they can be one-day price spikes or
    wider, more rounded turns. Each valley tends to look similar to the others.
    Same price
    Each minor low should bottom near the same price. Rarely will all three bottom at exactly the same price, so be flexible.

    Confirmation
    Price must confirm the triple bottom by closing above the highest peak between the three bottoms.

    Triple bottoms are three valleys that bottom near the same price. The chart pattern acts as a bullish reversal of the downward price trend.

    Price must trend downward into a bottom and upward into a top. That trend is what qualifies the chart pattern as a bottom or top, respectively. Without the trend, then you do not have a reversal pattern

    If the middle peak of an alleged triple bottom is significantly below the other two, then it is probably a head-and-shoulders bottom.

    best trading strategy for Triple Bottoms

    Wait for confirmation
    Since most triple bottom formations continue heading down,
    always wait for price to rise above the highest high reached in
    the formation (the confirmation point).

    Wait for throwback Almost two-thirds of the formations throw back to the breakout
    price, so consider waiting for the throwback before investing or
    adding to your position.

    take profit
    Compute formation height from highest high to lowest low in
    the formation. Add the height to the highest high. The result is
    the expected minimum price move.
     
  2. Duong

    Duong Senior Investor

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    Very good strategy! You should check the Pivot Strategy.

    :
    Ability to correctly determine key points on the price chart is one of the basic conditions of the effective trading. Forex Pivot strategy is one of the simplest and effective trade techniques for the high intraday volatility markets.

    Forex the Pivot Points trading Strategy at levels are applied to the technical analysis from thirtieth years of the 20th century and represent the turning points of the market allowing to build strong lines of support/resistance. Presently all calculations are automated, but it is necessary to understand that any indicators can predict turn points only for a certain temporary site."

    Here is the full strategy: Pivot Point Forex Strategy
     

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