Temat: get forex trading signals by Horn Tops 43

get forex trading signals by Horn Tops

Horn Tops
Appearance Two upward price spikes separated by a week on the weekly chart
Weekly chart, upward spikes
Use the weekly chart and locate two upward price spikes separated by a week. The two spikes should be longer than similar spikes
over the prior year and tower above the high of the center week. It
should look like a horn.
Clear visibility The horn highs should be well above the surrounding highs and the best performing reversals appear at the end of a long uptrend.
Confirmation The pattern becomes a valid horn top when price closes below the lowest low in the pattern. Do not trade forex signals without confirmation.
Measure rule
Subtract the lowest low from the highest high to get the pattern
height. Subtract the height from the lowest low to get the forex signals target price.
Threat assessment
Look for an uptrend spanning many months. Such uptrends often show horns near the end of the trend. If the horn top
appears near the end of a long downtrend, then it is best to
avoid it. Watch out for horns appearing after a downward trend
when the trend changes and price starts moving higher. Prices
may decline but the decline is usually short-lived (as in the rise between a double bottom).
Low volume
The failure rate declines if below average volume appears on both spikes, in a bull market.
Trend change
A horn top usually signals an approaching trend change, usually in less than 2 months.