Forex descending triangle and bearish reversal pattern

The last thing we’re going to look at is the descending triangle which is a good bearish reversal pattern and appears at the end of an uptrend so what you’ll see is I didn’t draw it here and I don’t know what happened to it but you’ll see that we’ll have lower highs but the price will get closer and stay at that level of support before the breakout. So you can combine this with the Fibonacci tool but I’ll show you an example where I didn’t use the Fibonacci tool I was just starting trading and I was able to simply look at the market structure and identify an entry point.

Forex descending triangle and bearish reversal pattern

Now you can do this so that you can execute the trade when the support is broken we will look at that now to make it clear that the safest place to enter for a trade like this is when the support is broken and at a lower times you will often see the price break through that level, triggering a retest, this is where Where you are executing the trade, so if the price is higher.

Let’s say this level I could say hey, I want to enter a stop point which means you want the price to go through this level and you can put it as a retest point and execute the trade from there, so now what we’re going to look at is the trade that you made when you started learning how to trade Right for the first time so I was using Fibonacci.

It will serve a diverse combination of studying the structure of the Forex market

I wasn’t as skilled at using the Fibonacci tool as I am now so what I was looking at was very much based on Elliott wave theory and so I was using a combination of studying market structure and a little bit of Fibonacci to determine how I was going to execute this trade, so you see here on the right side that This is the GBP and ZD that I was using in demo trading at the time.

And so I used to mark on my charts like my reasons for checking or basically like my arguments for why I was doing the trade that I was doing, and I knew through Fibonacci that we had hit a higher time frame for an extension, so the sequence was complete and I was looking for a reversal and so you’ll see Here at the top I say validate trade forecasts correctly.

And I see it says the formation of a 1-hour corrective pattern of a bearish barrier triangle so remember I said it can be called a barrier triangle as well and it is also called a bearish triangle two according to Elliott wave theory, where the horizontal line appears on the side of the triangle that the next wave will cross, so it is B and D are at the same level, meaning you have a horizontal line.

The right price will break to the lower side In Forex

Based on the Elliott Wave Theory, I knew that the right price was going to break out to the lower right side and I knew that I was looking for an entry point around this circle of gold I used to draw it and still infer what I thought was going to happen, and based on that structure, I knew that There will be a take profit around 1.n95 let’s call it, and then a possible second take profit at daily support.

So the first take profit order was fulfilled at 361 pips, and the second take profit was at 9875 pips, so I said because I expect a retest around the 2.04 area that was here, I’m looking to get in on the break of the 1-hour support and take profit around our support 4 and you all guess what happened Can you believe it now, I’m newer and I think I’ve been trading for about 2 years at this point.

Spin Forex trading all the way

Based on the market structure, I’ve been able to identify and chart almost a thousand points in the market now knowing what I’m doing I know that maybe I can tighten my entry a little bit, I can give my room a little bit of breathing room but as you can see here the price has broken through this level, this key level Which I discussed and promised to test again.

This is the entry point and then rotate the trade all the way around so you can double trade something like this, set tp1 or tp2 or if you have a single trade, you can take partial profits at tp1 um and let the rest do the work but based on the knowledge that I knew I had information On the chart patterns, I was able to identify this major movement in the market.

Incorporate the basics into your training so you can understand the Forex market
I’m trying to tell you all I’m trying to tell you, there are a lot of people that like and turn to technical analysis and think that it’s you know Hocus Pocus and that’s not true, it’s a bunch of junk and it’s not like I understand that fundamentals help tell a story The reason for the market movement.

But I think your technical analysis combined with it gives it a little bit of structure so I think you need both pieces to play in your analysis, but if you’re new and just starting and you don’t want to over-complicate things, I would say keep it simple but yeah at some point, you need to incorporate the basics into your training so you can understand why the market does what it does.

Summary

You can use your techniques with him so you can take advantage of those moves and get the most out of them even looking at this now, I don’t know I don’t think I saw it at the time but I see a double top here as well so you see the formation starting here it goes up and finds a level From resistance and puts it pushes down and finds a level of support and pushes up and finds a level of resistance and then it pushes down so at least I could have known that there were 361 pips on the table that I could make but the bigger potential move is that 9872 pips are correct.