Bearish Point and Figure Patterns,teknik2 bearish

Triple Bottom

The pattern is formed by three downs (1,2,3), on the third drop it pushes past the support line formed by the first two.
The third column will drop past the support line an equal distance to that of the tops.


Breakout of a Spread Triple Bottom

This pattern is a variation to the triple bottom except that on the third rally it fails to breach the support line. On the fourth move it breaks past the support line and should drop an equal amount to that of it's tops.


Descending Triple Bottom

Another variation of the triple bottom except in this case each consecutive low is lower than the last. When the price drops below the support line this generates a clear selling signal.





Downward Breakout of a Bearish Support Line.

A variation of the descending triple bottom except in this case there is an upward bias. The signal is to sell on the support line breakout.


Downward Breakout of a Bullish Support Line.

This pattern consists of a consecutive series of higher lows. When the price breaks through the support line a sell signal is given.























Bearish Trend Reversals
Head and Shoulders

The head and shoulders pattern is found in candlestick, point and figure, and chart patterns and is considered one of the most reliable reversal patterns.
The price forms a high on column one, followed by a period of consolidation. A second high is created followed by another period of consolidation, the right shoulder is then formed followed by a sell off. High volume should be seen on the last downward move.
Parralel support and resistance lines can be drawn as well as a visible neckline.
The height of the highest high should give a projection of the drop of the final downward move.


Triple Top

The triple top is a variation of the head and shoulders pattern. This pattern consists of three peaks of similar height. After the third peak is formed and the price movement breaks the neckline, a bearish signal is given. The expected drop should be of similar height as from the neckline to the tops.





Double Top

The double top is a variation of the triple top pattern. This pattern consists of two peaks of similar height. After the second peak is formed and the price movement breaks the neckline, a bearish signal is given. The expected drop should be of similar height as from the neckline to the tops. It is important to note that before the price drop, the trend line is broken.


Bearish Rectangle Reversal

The uptrend forms a clear period of consolidation, the support line is then broken on a heavy volume day, it is at this point where the bearish signal occurs.

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learn forex(Bullish Candlestick Patterns)

Single day bullish patterns
For the most part, daily candlestick reversal patterns are quite subjective with the exception of the "long-legged shadows' Doji" and the "hangman and hammer" which are more commonly used and provide more significance to the trader
Yo-Sen (single white candle)
Reliability Rating: Very Low
The easiest type of signal is the single white candlestick (yo-sen). The longer the body (jittai) the more bullish is the candle.






The Hammer
Reliability Rating: low/moderate
The Hammer, consists of a small body (either color) with a very long lower shadow. This pattern is typically found at the top or bottoms of trends. When the pattern occurs at the top of a up trend it is called a hangman (when it is found at the bottom of a down trend it is called a hammer).

The hammer can be either a black or a white candle.


Two day bullish patterns
Bullish Doji
Reliability Rating: moderate

A bullish Doji starts with a large black candle and then a down gapping Doji. Since on the second day is trades within a small range, it shows many positions have changed and potential for a reversal.
Waiting for the next day to open into a white candle would be prudent to confirm the trend however when the bullish Doji occurs it is worthwhile having a look.



Kirikomi or Kirihaeshi or Piercing Line candlestick pattern
Reliability Rating: Low/moderate
This two day candlestick opens with a black marubozu candlestick and is followed by a kirikomi candlestick ( a kirikomi candlestick is a marubozu candlestick which has opened lower than the previous low and closes above the 50% level, but below the black marubozu's opening price.)

The first candle shows a down. On the second day, the candle opens lower than the previous day's low. This creates an "overnight price gap". Typically the pattern does not weaken further (if it does it's marginal), the market then fills the gap.
By closing above the 50% level, the kirikomi candlestick is considered a stong bullish signal.
Bullish Belt Hold
Reliability Rating: Low

The bullish belt hold pattern is when a white candle occurs in a downtrend with no lower shadow and opens at a new low. This pattern shows a rally from the buyers towards the end of the trading session and gives some indication of a potential trend reversal














Bullish Meeting Lines
Reliability Rating: Moderate
The first candle in this pattern is a black candle, the second day a white candle gaps open with a lower body closes at the same price as the previous black candle. This signifies that the price has hit resistance and a short uptrend should ensue.

Bullish Kicking Pattern
Reliability Rating: High
This pattern consists of a black marabuzo followed by a gapped up white marabuzo.

This pattern is a strong sign that an uptrend will ensue. The major trend is not as important with this pattern as with other patterns and is considered a highly reliable signal















Bullish Engulfing Pattern (Bullish Tsutsumi)
Reliability Rating: Moderate
This pattern composes of "a second day long white candlestick that opens lower and closes higher than the preceding small black body."

The name comes from the idea that the white candle "engulfs" the black candle. This can also be know as a "bullish key reversal" and is a signal to reverse and go bullish.
It is common to see a neutral period follow this pattern since it takes time for the market to react to the large one day movement.
Bullish Tasuki Candlestick
Reliability Rating: Low
The bullish tasuki candlestick comprises of "a long black candlestick that opens within the range of the previous day's long white body, and closes marginally below the previous day's low". (Candlesticks do not have to have long bodies if the two days ranges are about the same size). The second day of the formation, the candle opens lower than the previous close. (This black candle occurs in an otherwise uptrending market). This move can be interpreted as profit taking. At this point, the profit taking during an uptrend where the bullish tasuki occurs.







Upside Gap Tasuki Candlestick
Reliability Rating: Moderate
The upside gap tasuki is "a second day black candle that closes an overnight gap opened on the preious day by a white candle."

The pattern is similar to a common gap. It provides a short term opportunity to sell to fill the gap. The filling of the upside gap is an indication that the uptrend will resume



Three day bullish patterns
Bullish Sanpei (three parallel candlesticks / three soldiers)
Reliability Rating: high
This pattern is intented to singal either a trend reversal or the trend continuation. It consists of three white candlesticks of similar increments and size. It signifies a continuation of the trend.






If the second and third day candlesticks open at or above the midrange of the previous day, this signifies that the trend will continue.

Three River Morning Doji Star
Reliability Rating: High
This pattern start with a long black candle (part of a downtrend), it is followed by a gap down doji and finally on the third day a white candle is formed with a gap up.

This pattern shows a potential rally. Many positions have changed for seller to buyer in this instance. It is the third white candle where the bullish signal can be confirmed. Be concious of the gaps since this will give you information as to the strength of the signal.

Three River Morning Star
Reliability Rating: High
The three river morning star is the opposite of the three river evening star, this is it's bullish equivalent.

Complex Bullish patterns
Bullish Sanpo (rising three methods)
Reliability Rating: high
The idea behind the sanpo pattern is that no price movement moves straight up or down, there always exists some retracement before the movement makes a new high or low. Therefore this pattern is to indicate whether a trader should "pause" during the trend (a short term consolidation will occur with a direction opposite to that of the major trend).
Bullish Formation (rising three methods)

Bullish Breakaway
Reliability Rating: Moderate
This is a multiple day pattern. It starts with an established downtrend. On the second day the stock gaps down with a smaller black candle. On day 3 and 4 the candles are small but closing downward. On the last day of the pattern a large white candle is formed.

In this pattern, day 4 in not necessary, an equally valid pattern is where days 1,2,3, and 5 occur.
This only shows the potential for a short term breakout and does not give indication about the strength of the breakout.

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analysis forex Reversal Patterns (Tops And Bottoms

Reversal patterns, or tops and bottoms, signify a fundamental change in the long term trend.
Overview
• Tops are usually less stable and shorter than bottoms.
• Bottoms usually have smaller price variations and are slower to establish.
• Volume is usually more important on the upside.
• Confirmation of a top or bottom is in a double top or bottom (or a short channel.)
The most popular Reversal Patterns include: head and shoulders, double tops and bottoms, triple tops and bottoms, and V-formations.
Interpretation & Signals
Head & Shoulders




The well known head and shoulders pattern is formed by three peaks; the center peak, or head, is slightly higher than two lower, and not necessarily symmetrical, shoulders. The line joining the bottoms of the two shoulders is called the neckline. Due to fluctuations, the neckline is rarely symmetrical or perfectly horizontal.
The pattern isn't complete until the neckline is broken. It is often good to wait for confirmation - for example, two successive closes below the neckline. Remember, markets often bounce back to the Neckline after the breakout and this becomes a new level of resistance.
Volume should be assessed to confirm the validity of these patterns. Volume is normally heaviest during the formation of the left shoulder and also tends to be quite heavy as prices approach the peak. The real confirmation of a developing Head and Shoulders pattern comes with the formation of the right shoulder, which is invariably accompanied by distinctly lower volume.
Some traders use the distance between the neckline and the top of the head to project a "price objective." The price objective is determined by measuring from is the top of the head to the neckline, and using this distance from the breakout point downwards.
An Inverted Head and Shoulders pattern is a mirror image of the Head & Shoulders pattern (forming a market bottom).
Double Tops



Double Tops are another reliable and frequently used reversal pattern. This pattern consists of two tops of approximately equal height. A line is drawn below and parallel to the resistance line that connects the two tops. The neckline is a strong support for price level but eventually fails.
As with a Head and Shoulders, after the two rallies and their respective reversals are completed the double tops is confirmed only when the neckline is broken. The support line then becomes a resistance line, which often holds a market rebound.
A Double Bottom pattern is a mirror image of a double top pattern: The average height of the bottoms gives a good indication of the price objective.
Triple Top
A tnple top is a cross between a head and shoulders and double top. This formation consists of three tops of approximately equal height. A line is drawn below and parallel to the resistance line that connects the three tops. The neckline is a strong support for price level but eventually fails. The support line then becomes a resistance line, which usually holds any market rebound.
Triple Bottom
A triple bottom pattern is a cross between an inverted head and shoulders and double bottom pattern














V- Pattern
The V pattern is an unusual pattern in that a sharp trend switches from one direction to the other without warning and with high volume at or just after the turn around.



Further points
Trend reversals offer some of the most important opportunities for entering a market with a good profit potential. They usually represent fundamental changes in the underlying character of a particular market and often go on to yield big moves.
However, a market top or bottom is often difficult to identify. It is even more difficult to choose appropriate entry and exit points. One problem is distinguishing between an actual change in trend or merely a congestive phase in the middle of a move. It is usually advisable to wait for prices to actually confirm a trend reversal by developing one of these well-tested and reliable reversal patterns. The actual buy or sell signals are based on a breakout in the direction of the new trend.
Here are some general observations about Reversal patterns:
A breakout through a trend line is used in conjunction with a price pattern to yield signals in terms of both price level and timing.
The longer the time required to form a pattern and the greater the price fluctuations within it, the more substantial the coming price movement is likely to be. The time frame is normally from several days to several months - intraday patterns are not considered reliable.

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45 Ways to Avoid Losing Money Trading FOREX, by Jimmy Young

1) Knowledge Deficiency – Most new FOREX traders don’t take the time to learn what drives currency rates (primarily fundamentals). When news or a statement is due out they must close out their positions and sit out the best trading opportunities. They are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.

2) Overtrading - Trading often with tight stops and tiny profit targets will only make the broker rich. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.

3) Over leveraged - Leverage is a two way street. The brokers want you to use high leverage because that means more spread income because your position size determines the amount of spread income; the bigger the position the more spread income the broker earns.

4) Relying on Others – Real traders play a lone hand; they make their own decisions and don’t rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.

5) Stop Losses – Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade commit to a reasonable stop loss limit that allows your trade a fair chance to develop.

6) Demo Accounts – Broker demo accounts are a shill game of sorts; they’re not as time sensitive as real accounts and therefore give the impression that time sensitive trading systems, such as short-term moving average crossovers can be consistently profitably traded; once you start dealing with real money reality is quick to set in.

7) Trading During Off Hours – Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours – stay out.

8) Trading a Currency, Not a Pair – Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.

9) No Trading Plan - Make money is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don’t have an edge, you don’t have a plan, and likely you’ll wind up a statistic (part of the 95% of new traders that lose and quit).

10) Trading Against Prevailing Trend – There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you’re trading against the trend.

11) Exiting Trades Poorly – If you put on a trade and it’s not working make sure you exit properly; don’t compound the damage. If you’re in a winning trade don’t talk yourself out of the position because you’re bored or want to relieve stress; stress is a natural part of trading; get use to it.

12) Trading Too Short-term – If you’re profit target is less than 20 points don’t do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.

13) Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and you’re results will improve.

14) Being Too Smart – The most successful traders I know are high school graduates. They keep it simple and don’t look beyond the obvious; their results are excellent.

15) Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow.

16) Ignore Technical Condition – Determining whether the market is over-extended long or over-extended short is a key determinant of near time price action. Spike moves often occur when the market is all one way.

17) Emotional Trading – When you don’t pre-plan you’re trades essentially it’s a thought and not an idea; thoughts are emotions and a very poor basis for doing trades. Do people generally say intelligent things when they are upset and emotional; I don’t think so.

18) Lack of Confidence – Confidence only comes from successful trading. If you lose money early in your trading career it’s very difficult to gain true confidence; the trick is don’t go off half-cocked; learn the business before you trade.

19) Lack of Courage to Take a Loss – There is nothing macho or gutsy about riding a loss, just stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Getting married to a bad position ruins lots of traders. The thing to remember is the market does crazy things often so don’t get married to any one trade; it’s just a trade. One good trade will not make you a trading success; rather it’s monthly and annual performance that defines a good trader.

20) Not Focusing on the Trade at Hand – There is no room for fantasizing in successful trading. Counting up and mentally spending profits you haven’t made yet is mental masturbation and does you no good. Same with worrying about a loss that hasn’t happened yet. Focus on your position and have a reasonable stop loss in place at the time you do the trade. Then be like an astronaut – sit back and enjoy the ride; no sense worrying because you have no real control; the market will do what it wants to do.

21) Interpreting FOREX News Incorrectly – Fact is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.

22) Lucky or Good – Your account balance changes don’t tell you the whole story about your trading; fact is if your taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big loses and losing streaks. Ask yourself this; if I had a couple of consecutive losing streaks or a couple of consecutive big loses, how would my account balance look. Generally, traders making money without big daily loses have the best chance of sustaining positive performance. The others are accidents waiting to happen.

23) Too Many Charity Trades – When you make money on a well thought out trade don’t give back half on a whim; invest your profits from good trades on the next good trade.

24) Courage Under Fire – When a policeman breaks down the door to a drug dealers apartment he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building he is scared but does it anyway; and gets the job done. Same with trading; it’s ok to be scared but you have to pull the trigger; no trigger – no trades – no profits – no trader.

25) Quality Trading Time – I suggest 3 hours a day of quality, focused trading time; that’s about all your brain allows. When your trading being 100% focused; half way is bullshit’ it doesn’t work. Don’t even think that time spent in front of the computer watching the rates has any correlation to profitability; it doesn’t. Spend less time but when your trading be 100% focused on trading.

26) Rationalizing – Killer. Absolute Killer. Put your trade on and let it run. If it hits your reasonable pre-determined stop your out. Think of yourself as a prizefighter; you just got knocked out. Moving your stop is like getting up after being crushed with a knockout blow; it’s pointless; things will only get worse. Don’t ignore the obvious; your wrong – get out. Come back the next day and try again. A small loss will not hurt you; a catastrophic loss will.

27) Mixing Apples and Oranges – Have you ever done this; you see the EURUSD trading higher so you buy GBPUSD because it “hasn’t moved yet”. That’s a mistake. Most of the time the reason the GBPUSD hasn’t moved yet is because its already overbought or some 4:30am UK news was bearish. Don’t mix apples and oranges; if EURUSD looks bid buy EURUSD.

28) Avoiding the Hard Trades – Bank FX traders have an axiom; the harder the trade is to do the better the trade. This I learned from experience; when I needed to buy EURUSD and it was hard to get them that’s when it’s necessary to pay up and get the business done. When it’s easy to get them then sit back and wait for better levels. So if your trying to get into a trade or more importantly get out of a trade don’t putz around for a few points; get your business done.

29) Too Much Detail – If your trading more than 2 indicators then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.

30) Giving Up Too Easy – Your first trade of the day may not be your best but certainly it’s no reason to quit. I have a preset daily trading limit and I use it; you can’t make money by making excuses; getting trades wrong is natural and should be expected.

31) Jumping the Gun – Don’t be penny wise and dollar foolish; wait for your trade signal to be clear; put on your trade and give it a decent size stop loss so that you don’t get knocked out by random noise. Do trades don’t’ buy lottery tickets (extremely tight stops).

32) Afraid to Take a Loss - trading is not personal; it’s business. Don’t think that a poor trade is a reflection on you. It could be your just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk; if it’s going bad it will probably get worse; I think that’s Einstein “in motion stays in motion…”

33) Over-Relying on Risk Reward – There is zero advantage in risk reward; if you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).

34) Trading for Wrong Reasons – Because the EURUSD is going up is not in itself a reason to buy. Buying EURUSD because its not moving so little risk is even worse; you’re paying the toll (spread) without even a hint that you will get a directional move. If your bored don’t trade; the reason your bored is there is no trade to do in the first place.

35) Rumors – Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor; if EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trades determine where in the motion you are entering.

36) Trading Short-term Moving Average Crossovers – This is the money sucker of the century. When the shorter term moving average cross the longer term moving average it only means that the average price in the short run is equal to the average price in the longer run. For the life of me I cannot understand why this is bullish or bearish. Easy to set up on software, complete with lights, bells and whistles, and good for the seller getting thousands for the software but in terms of creating profit it’s a zero.

37) Stochastic – Another money sucker. Personally I think this indicator is used backwards; when it first signals an overdone condition that’s when I think the big spike in the “overdone” currency pair occurs. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold; you’ll be with the trend and likely have identified a move with plenty of juice left. So if %k and %d are both crossing 80; buy! (Same on sell side; sell at 20)

38) Wrong Broker – A lot of FOREX brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.

39) Simulated Results – Watch out for “black box” systems; these are trading systems that don’t divulge how the trade signals are generated. Great majority of them are absolute garbage. They show you a track record of extraordinary results but think about it; if you could build a trading system with half a dozen filters using the benefit of hindsight, couldn’t you too come up with a great system. Of course going forward is an entirely different story. High-speed number crunching capabilities allows for building great hindsight trading systems; BEWARE.

40) Inconsistency – Every business (FOREX trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it’s likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them set goals that are realistic and you will achieve them.

41) Master of None – Focus on one currency for technical trading; each currency has a unique way of trading and unless you get intimate with it you will never truly understand its underlying idiosyncrasies. Don’t spread yourself too thin – focus – master one currency at a time.

42) Thinking Long Term – Don’t do it. Stay in the moment. Especially if you’re a day trader. It doesn’t matter what happens next week or next month, if your trading with 30 to 50 point stops restrict your thought process to what’s happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when your trading a significantly shorter time frame.

43) Overconfidence – Trading is not easy; statistics show 95% failure rate. If your doing well don’t take your success for granted; always be on the lookout for ways to improve what you’re doing.

44) Getting Pumped Up – The trick is to maintain an even keel; when you are in a trade you want to think exactly as you would if you didn’t have a trade on. To do this requires a relaxed disposition; this is not a football game; don’t get psyched up; relax and try to enjoy it.

45) Staying in the Game – I don’t recommend demo trading because traders learn bad habits when trading with play money. I also don’t think “letting it all hang out” right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose; about a quarter to a third of what you expect to reach as your trading matures is reasonable.

READ MORE - 45 Ways to Avoid Losing Money Trading FOREX, by Jimmy Young