Every trader wants to open a transaction at the beginning of a trend, and close them at the end of that trend. This can help in turning figure technical analysis. Each of the turns corresponds to one of the models of a trend reversal.
Types of figures of a trend reversal
The authors of the literature on technical analysis are the following reversal patterns:
- Saucer
Fractal-zigzag reversal only a reversal in the trading system Masterforex-V
Analysis of classic reversal showed that they all have common patterns:
- A trend in the opposite direction
- Usually we see the intersection of the trend line
- Breaks the previous level of "support" and "resistance"
- Is formed and then breaks new level of "support" and "resistance"
Therefore, the trading system Masterforex-V adopted one reversal pattern that meets all these requirements, which is called the fractal-zigzag reversal.
The advantage of using fractal-zigzag reversal
- You do not need to remember the name of all the pieces of technical analysis
- You can concentrate on finding the specific conditions of formation of a single shape
- You will see the potential of the subsequent movement is on the structure of fractal-zigzag reversal.
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If you are familiar with these concepts - safely move to the next class: Elliott Wave Theory
