Step #1 How to Draw Chart Pattern
To learn how to draw the simply follow step by step guide – see figure in chart for a better understanding of the process:
- First, click on the indicator which can be located on the right-hand side toolbar of the TradingView platform.
- Identify on the chart the starting point X, which can be any swing high or low point on the chart.
- Once you’ve located your first swing high/low point you simply have to follow the market swing wave movements.
- You need to have 4 points or 4 swings high/low points that bind together and form the strategy.
- Every swing leg must be validated and abide by the forex Fibonacci ratios presented above.
Step #2: How to Trade Chart Pattern:
- SELL at Point D which should satisfy the requirement CD = 2.24 – 3.618 of AB leg.
Step #3: Place the Protective Stop Loss above the 3.618 Fibonacci extensions.
Step #4: Pattern Target: Multiple Take Profit Strategy: TP1 = 0.618 CD ; TP2 = below A