2 break failure pattern:- Article from Friend

Please post all your studies here so other ppl can be benefited

2 break failure pattern:- Article from Friend

Unread postby ananey » Thu May 02, 2013 2:52 pm

There is an interesting pattern which emerges very often. Like most patterns these can be observed from the weekly charts for our investor friends who trade long term to short term charts like the 30mins.
I call it the 2 break failure pattern. It’s basically when Nifty/Gold MCX/Forex or any other instrument try to breakout twice

Note the pattern works best for Downtrends, that is when the markets are falling and we get a rebound because of this pattern. Uptrends have been including in the charts and explanations anyway.

attempts a breakout/breakdown twice and fails, the third time the instrument reverses in the opposite direction. You will get three points in total,
The first is a reference point,
The Second will try to break the first but fail
The third will try to break the second and usually fail, this is the point we look to short or get out of longs.




Nifty today has presented it self with a 2 bar pattern on the hourly. Will we fall from here, the current market price is 6005.
Can the pattern fail? abosultely, every pattern does, it’s the traders skill which enables him to make big amounts when he wins by letting profits run and loosing small amounts by setting a fixed stoploss when he is wrong.
Trading is like any other business, every trade like a new product, if you have a winning product, dont let it go! Keep with it until it can give you it’s maximum potential.

How Is This Information Useful?
When you have a method, a strategy trading becomes a business. Unfortunately everyone spends years of eduation to get a degree but spend no time on the business of trading. Educate yourself before getting into anything, not only investing/trading.

If you know the odds are against you when you are long, its best to exit and wait for a more reliable pattern to turn up
All the best!

If you like this post please click on LIKE button and share it to world.
Like Us :

ananey
 
Posts: 6
Joined: Wed Jan 02, 2013 1:30 pm

Re: 2 break failure pattern:- Article from Friend

Unread postby ananey » Thu May 02, 2013 9:36 pm


If you like this post please click on LIKE button and share it to world.
Like Us :

ananey
 
Posts: 6
Joined: Wed Jan 02, 2013 1:30 pm
Top

Re: 2 break failure pattern:- Article from Friend

Unread postby ananey » Thu May 02, 2013 9:38 pm


If you like this post please click on LIKE button and share it to world.
Like Us :

ananey
 
Posts: 6
Joined: Wed Jan 02, 2013 1:30 pm
Top


Return to Study Charts



Who is online

Users browsing this forum: No registered users and 8 guests

Shop at amazon and get latest offers
============================================= =============================================