Saturday, September 24, 2011
123 pattern in eur/aud
Hi trend traders and independent market analysts. Today I wanted to remind you about importance of 123 pattern in your trading. I hope you noticed that very often at the end of the move (in a range or a trend) we have some reversal patterns. In most cases they would be: head and shoulders or 123 structure. I wait for those patterns near important support and resistance levels or at the end of a swing. If the move is strong and continues for a long time you will want to search for a reversal on daily or even weekly charts. If it is a short term (one week or a few day move) you would be willing to see the pattern on 4 or 1 hour charts.
I want you to look at eur/aud daily chart and see two 123 patterns there. Both of them formed at the end of strong moves and presented unique opportunities for those who like trading reversals to enter reversal trades and jump on to a new developing move. As eur/aud tends to develop big moves you would definitely have to watch the pair for possible reversal patterns at important support and resistance levels.
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.