The difference between crown and head and shoulders in a Forex trade

The difference between the crown and the head and shoulders is going to be the neckline, so you’ll see that between the middle end which is here, and the right end you have a deeper dip which is higher than the left end was, so in the bullish position, the second formation of the mother will be the tip of the crown is going to be deeper and higher than it was created. On the left side well.

The difference between crown and head and shoulders in a Forex trade

It can be used with the Fibonacci tool to determine your entry and exit and can be traded at this point to enter the uptrend, so in this type of setup you can either have a deep king’s crown or a shallow king’s crown, what I have shown here is a deep king’s crown, so you place your stop loss below the bottom The last one, and you place your entry at the breakout and backtest of this trend line, then your take profit level will go to uh in the Fibonacci projection on the time frame in which you find this crown.

I need to get back to the good stuff now, okay so This is the final diagonal and you might see it called the front diagonal or it’s called the wedge, and it’s based on Elliott wave theory, and what you see inside this wedge is five waves, five waves divided into three, and that’s what you’re looking for b c d Which is what we discussed at the beginning of this, so if you follow the deal, you’ll see one 2 3 right one two 3 one two three.

The final move of a downward sequence in Forex

It is the final movement of a downward sequence and with this, the price of the movement is expected to return to the level at which the formation began which is here to keep things clean, I didn’t explain it completely but we will look at it in the next slide up for a little better understanding now, remember the wave that we looked at when We started this article, where you have to learn how to pull things out and take them apart.

And the more you look at these charts the more you look at it from an ab c d point of view, this is going to get easier for you, so you put your stop loss below the last low that was here at a level, you have your breakout, you have your backtest retest which is your C, and then You have your Dake Profit which is located at a similar level of resistance where the trend started.

Your Bullish Reversal in Forex

It’s determined by your final diagonal, okay, your bullish reversal okay, so let’s see it live in the market and what I should have done is take a screenshot of this on the clock so that you have been able to see it fully, this is your final diagonal here and you’ll see the re Backtesting I get this question that a lot of people ask, does the price have to touch the back of the trend line and no it can’t come into an area.

This is where the combination of the FIB tool and your analysis is going to make a difference, so I know that the price of this setup is based on the Fibonacci sequence right here and so you have a pullback that appears at the 61a retracement level, remember we looked at the chart and we found different levels and different colors This is roughly the retracement level here at the 618 level if not the 618 pullback level.

And then I know based on this if I was just trading based on Fibonacci or if I was trading and I knew I wanted to look for a second entry, then I would know that my take profit would be my first take profit here, right my first take profit would be here and I could say that I know the price will move to TP2, so I will set the second Take Profit to this second daily resistance level.

How can you place a stop loss below the last bottom in Forex?

Depending on the conservative approach you enter here at this 618 level or between this 50 and 618 pullback, you can put your stop loss under the last bottom and I know from this point to this point this is 1432 points now if you take it to the beginning of the formation that means 100 points Additional so that would mean there are 250 points on the table.

Can you see what you like if you set up your position so that you can just make your trades and you can run and do whatever you have to do in life? Don’t stop because you are trading, we have to learn how to integrate life into it or we have to learn how to integrate trading into our lives.

Assembling a Forex trading system allows you to predict where your entries will be

For a lot of people, they put together a system that allows you to predict where your entries are going to be and where your exits are going to be is going to be Cher’s game for you, I’m kidding you’re not okay, so let’s go ahead, let’s take a look at the next formation, that’s going to be your next formation It is a crown of an ascendant king.

Get right back to me, get back to my deal, here is the neckline is what I’m referring to, so a lot of people will draw this and say hey, this is head and shoulders like no, it’s called the crown and it follows the Fibonacci rules so do you see this wave that we did at the beginning of In the article, we have defined a low, a high B, a low C, and an extension D.

Summary

I have to tell you when I first started learning how to trade and started recognizing these patterns, this crown was giving me the flow because I couldn’t see it now, I can only see it everywhere in the market, it’s everywhere, and in a lot of people, it’s called This is head and shoulders and it’s not head and shoulders it’s a crown, the distinct difference between this and head and shoulders is right here Look at my deal if you’re multitasking.