Trading Articles

Where To Place Stop Loss

The questions of where and how far should the stop loss be is an issue of major importance for beginners and advanced traders alike.

In this article we will give the basic methodology of placing stop loss when trading chart patterns.

Place Stop Loss in Logical Level
The main idea about Stop Loss is the following: Stop Loss should be in a place that if reached by price, it voids the logic upon the trade is based. If price reaches that level there is no reason of staying in the trade any longer. This is from theoretical point of view.

How To Trade Wedges

Wedges are a widespread group of patterns, that are particularly common in the EUR\JPY and GBP\JPY currency pairs. In this article I will describe the methods of trading it for maximum profit.

The wedge is a chart pattern with two trendlines that are both at the same direction, but with different slope. Its appearance resembles an expansion of range. It is one of the easiest patterns to identify but one of the hardest to trade correctly, and incurs losses to many traders.

This Secret Pattern Predicted 89% of Major Market Crashes

Double Tops are one of the most common chart patterns - and in fact they predicted a vast majority of big market moves. In this article I will teach you to identify and trade this chart pattern profitably.

Identifying The Pattern
The Double Top pattern occurs when price is stopped twice at the same Resistance level. This pattern is also called the 'M', because its resemblance to the letter M. It is one of the most reliable and common patterns - almost 80% of the patterns reach their projected target.

The price level between the two tops is called the Neckline.

How To Trade Chart Patterns: Part 2

In this article we will focus on the more practical side of Pattern Trading: Entries. You will learn the two attitudes at trading that will determine your Risk:Reward ratio, the frequency of your trades and eventually you overall profitability.

As mentioned in part 1 of 'How To Trade Chart Patterns', all trading decision you will make should be based on Support and Resistance. Buy at Support, Sell at Resistance, it is a common truth in trading. But things are a bit more complicated.

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