Three hill and mountain pattern

Price action education 3

Commentaire:

Each hill retraces to a minimum of 0.5 to 0.61 8 (Fibonacci ratio) of its height before expandinj
into the next hill. After completion of the "Three Hills," a trend line is drawn in the chart
below connecting the bottoms of the "Three Hills." A close below the trend line gives a shorttrading
opportunity. After completion of 62% of the prior range, it has another important
reversal to the upside, the "Mountain" which rallies about 100% to 127% of entire hills range
(AB).

Trade: The first trade occurs on the close below the trend line. The second trade occurs after
completion of a 62% retracement to the downside-"AB." The second trade is a "long" trade
from "C."

Target: The first trade target (Short) is 62% of prior swing length-"AB." The second trade
target is from the "C" level, which is 100% to 127% of "AB" to the upside.

Stop: Place the "first trade" stop above the "B" level and the "second trade" stop below the
"C" level.