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Chapter 9, Part V. Double Deuce – dual candlestick patterns. Page 2

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Although we’ve described the perfect pattern, some easier conditions could be applied, especially at liquid markets (such as Forex). So, this is normal, if the black candle shows open price just above the closing price of the white candle rather than above the high. Also, the close of black candle could be not so deep, as on the picture, But the deeper the close of the black candle penetrates the white one, all the better. If the close of the black candle does not even reach the middle of the white candle, then this pattern is treated as not sufficient (this is one of minor patterns) and demands additional confirmation from future price action – for example, solid continuation of a down move after the pattern has been formed.

    Pipruit: Excellent pattern, Commander. But what does word “Equals” mean here in the diagram?​

    Commander in Pips: You can easily understand the market mechanics of this pattern by combining two candles into just one. To create so called consolidated candle. It will looks like a Shooting star pattern. Just imagine that this price action has happened not during two trading periods but during just one. In this case the consolidated candle will have an opening price of the first white candle, low price of a lowest of both candles, similar for the higg – highest price of both candles, and close from the second candle. This is precisely what I drew here. And it looks like a Shooting Star. Also this pattern has all the same properties, I mean how to trade it, at what circumstances it should be treated as failing – just reread the previous lesson.

    Pipruit: You mean that this pattern is triggered, when the market shows close below the low of this pattern, and treated as failing if market will close above the high of the pattern?​

    Commander in Pips: Yes, that’s it. But not only these movements – anything, how to view the appearance of any patterns, do not trade them blindly etc. In other words – all that we’ve said in previous lessons about patterns should be applied to all the following parts and patterns.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 19, 2016
    fran alvarez likes this.
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