6 Round tops and bottoms are for sure. Just
be careful when within the first zone
0.0000 to 0.0015 above or below the zero.
I like the rounding to be formed over at
least 5 bars
Up to now I have only concentrated to give the signal on the MACD window so that
you will be able to recognize it. It is easy to see the formation after it has formed. It
takes a bit of practice to recognize it while it is forming. Lets look at a couple just to
see how they look when the trade is entered
Let us look at the graph above. See how price levels play a roll in the support and
resistance of the price movement. Say we entered the trade at Entry above. Our first
profit target will be around our fast moving averages (8EMA and 21EMA). Our
second profit target will be around the slow moving averages(89SMA and365EMA).
Our third profit target will be at price level 1.2100 etc etc etc.
This is how you plan your trade in advance to take partial profits till you complete the
trade. Should there be a moving average or price level nearby and below your entry
level you must take note that the price might go and test them. So your stoploss must
be aware of that.
Again I ask you to study the movement of the price around the moving averages.
When the price are above the 89SMA the trend is normally up and visa versa.
After the price crosses the 89SMA it tends to pullback to the 21EMA before it carry on its
direction if it is a trend direction change otherwise it tend to test the 89SMA again and
then it runs over and across the 89SMA till it finds direction and then it pulls back to
the 21EMA before proceeding on its path.
Share your opinion, can help everyone to understand the forex strategy.