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Trend_Reversal_Patterns.pptx

Published Jun 18, 2013 in Business & Management
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On the charts of currency rates it’s possible to highlight geometric models, which are formed after the price level has reached its maximum value in the current trend. Recognition of these figures indicates the end of the trend and the beginning of a new movement. 

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Presentation Slides & Transcript

Presentation Slides & Transcript

Trend Reversal Patterns

On the charts of currency rates it’s possible to highlight geometric models, which are formed after the price level has reached its maximum value in the current trend. Recognition of these figures indicates the end of the trend and the beginning of a new movement. 


















To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/trend-reversal-patterns

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The Head and shoulders graphical price pattern signals the end of trend and the following change in direction of the asset’s price. It is typically formed in a developed uptrend.
This pattern is represented by three tops of the market price located at different levels: two lower tops (shoulders) aside and one highest top (head) in between. There is also a neckline (support) connecting pattern’s lows.








Following head and shoulders pattern formation the price
is generally believed to drop at least to its target level, calculated as follows:
T = N – (H – N),
Where:
T – target level;
N – neckline level (initial support);
H – pattern’s head level (highest top).

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/head-and-sholders







THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The inverse head and shoulders graphical price pattern serves as a sign of trend reversal and is expected to be followed by change in direction of the asset’s price. It is typically formed in a developed downtrend.
Formation
The pattern is characterized by three consecutive lows of the market price located at different levels: two higher bottoms (shoulders) aside and one lowest bottom (head) in between. There is also a neckline (resistance) connecting pattern’s highs.





Following inverse head and shoulders pattern formation
the price is generally believed to rise at least to its target level,
calculated as follows:
T = N + (N – H),
Where:
T – target level;
N – neckline level (initial resistance);
H – pattern’s head level (lowest bottom).

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/head-and-shoulders-inverse












THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The double top pattern is considered a graphical price formation which precedes existing trend reversal. It is typically formed in an uptrend and is expected to be followed by a drop in prices, while the longer it takes for the pattern to be formed the more reliable it is.
Formation
The pattern is characterized by two parallel horizontal lines representing support and resistance levels which respectively connect two most recent local highs of the price and a low, holding a certain bunch of price fluctuations within. The price reverses twice at resistance levels under investor consideration the asset is overpriced there.




Following double top pattern formation the price is generally
believed to drop at least to its target level, calculated as follows:
T = S – H,
Where:
T – target level;
S – support level (recent local low);
H – pattern’s height (distance between support and resistance levels).



To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/double-top




THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

The double bottom price pattern is believed to be a sign of existing downtrend reversal. Prices are expected to begin a rally following its formation, while the longer it takes for the pattern to be formed the more reliable it is.
Formation
The price dynamics under the pattern is similar to the Latin latter “w”. The two most recent lows of the price represent a strong support area where investors reversed their short positions thinking the asset is underpriced at this level. On the other hand the most recent local high is considered to be a resistance level.



Following double bottom pattern formation the price
is generally believed to rise at least to its target level,
calculated as follows:
T = R + H,
T – target level;
R – resistance level (recent local high);
H – pattern’s height (distance between support
and resistance levels).

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/double-bottom













THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:




























To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/triple-top














The triple top is a price pattern generally formed in an uptrend suggesting following reversal and a drop in prices. It is considered more significant than the double top pattern.
Formation
The pattern is represented by three consecutive tops locates roughly at the same level and two bottoms. Resistance and support lines connect the tops and the lows respectively. The resistance is believed to be strong as the price reverses three times from the level where the asset is considered overpriced.
Following triple top pattern formation the price is generally
believed to drop at least to its target level, calculated as follows:
T = S – H,
T – target level;
S – support level (recent local lows);
H – pattern’s height (distance between support and resistance levels).

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

























To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/triple-bottom












The triple bottom price pattern it typically formed in a downtrend being a sign of a following reversal and a rise in prices. It is considered more significant than the double bottom pattern.

The pattern is characterized by three consecutive lows locates roughly at the same level and two highs between them. Support  and resistance lines connect the lows and the tops respectively. The support is considered to be especially strong as the price reverses three times from the level where investors believe the asset is underpriced.
Following triple bottom pattern formation the price is generally believed to rise at least to its target level, calculated as follows:
T = R + H,
Where:
T – target level;
R – resistance level (recent local highs);
H – pattern’s height (distance between support and resistance levels).

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:




























To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/diamond












The brilliant graphical price pattern serves for existing trend reversal confirmation in case of its occurrence on the chart. Traditionally it appears in an uptrend.

The pattern is characterized by four limited trend lines representing two support lines below and two resistance levels above which respectively connect the most recent lows and highs, visually forming a figure shaped as a brilliant or a rhomb as price fluctuations amplitude initially widens and then narrows.
Following brilliant pattern formation the price is generally believed to
fall at least to its target level, calculated as follows:
T = BP – H,
Where:
T – target level;
BP – right support breakthrough point;
H – pattern’s height (distance between pattern’s bottom and top).

THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS