get free forex trading signals by Simple ABC Correction

Discussion in 'General Forex Discussion' started by frees2020, Dec 8, 2018.

  1. frees2020

    frees2020 Active Member

    What should you look for when searching for measured moves?
    Here’s a list
    • Measured moves act as reversals of the prevailing price trend. For
    MMUs, look for a downtrend before the chart pattern begins.
    For measured move down , look for an uptrend preceding the pattern.

    • The first leg should be a straight-line run with little curve to it.

    • The corrective phase should be proportional to the first leg. Prices
    usually retrace 40% to 60% of the first leg move. Be suspect of
    larger retraces. Pair large first legs with large retraces; small first
    legs with small retraces. Avoid patterns that look like horizontal
    saw teeth—the retrace has gone too far.

    • The second leg should approximate the slope of the first leg, but allow variation.

    • Volume trends downward throughout the pattern.

    Simple ABC Correction Trading Tips
    Draw a trendline from A to C and extend it downward. When
    price closes above the trendline, buy.

    • For more aggressive traders, draw a trendline down from C and
    buy when price closes above it (see the dashed line in the figure).
    Also, a close above the intraday high at valley B works.

    • For more conservative investors, a close above C or even A is the
    buy signal.

    • Buy only if the market and industry are both trending upward, so
    the stock can make the most of upward momentum.

    • Be prepared for price to reverse at A—36% do, and prices drop,
    confirming a double top.

    The larger the corrective phase retrace, the better the chance of
    meeting the price target

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