Combination of Patterns
Combination of Patterns

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Examples of combinations of patterns that most likely influence the price of a currency pair when that level gets hit:

Breach of level + Resistance + Trend

Price is seen moving with great buying power to the upside, then it bounces from the level formerly passed by. That level is where price reacts to the downside.

Resistance + Breach of level + Strong price movement to downside

What is important here is the strong resistance and then a strong breach of that resistance. What also stands out is the aggressiveness of price to move from the level.

Resistance + Volume + Breach of level by strong price movement to downside

Clearly there is a resistance from the level, and strong gravity back towards it. This whole concentration of activity plus the downward conclusion is a definite marker for downward pressure on price in the future. Regardless of what currency this situation is at play.

Soft low + Resistance + Sharp high

Coming from a higher level the price creates a low point on the chart, from where later on it bounces again to the upside. Then a breach of level and a creation of a sharp high of price. This in many cases will initiate a downward price movement when price will be at the level again.

Soft rejection of price + Volume + Resistance + Breach of level

Seeing this solid soft low means that the market took its time to reject a further decrease of price. The volume that comes with this low gives price a foundation to rejuvenate and continue its upward movement.

Resistance + Volume cluster downtrend

Resistance and volume are critical in this example of how market behavior influences price movement.

Volume + Resistance + Sharp rejection

A strategy level is crossed, yet it holds and keeps price beneath it. The formation presented gives reason to keep the level as a possible place of downward movement in the future because of pressure that is there.

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Combination of Patterns

 35,00 / year

Using the above mentioned different types of interesting sequences in your analysis of how price moves and is redirected by market participants, can often lead to a better foresight in the direction price will take from a certain point on the chart. Expect at least 3 of these set-up examples every week on any of the below mentioned currencies.