Breakaway Rising and Falling Three Methods candlesticks
Sixty Fourth session of Forex Training
Welcome back to Forex professional training in financial markets.
In this session Breakaway – Rising and Falling Three Methods candles will be studied.
Bearish Breakaway
Bearish Breakaway candle pattern, showed on the left graph, forms on an uptrend and includes 3 connecting Bullish candles with small bodies, High and Low followed by a Long Bearish candle.
The middle candle in the Bullish 3-set pattern can be Bearish, too.
The last Bearish candle must have Close price lower than Open Price of the first candle in 3-set pattern, also Low price of the Bearish candle must be lower than the Low price of the Bullish candles.
Trader can place a Sell order with entry price lower than Low price of the last Bearish candle.
If a trader considers the length of the Bearish candle as X, then TP price would be X pips lower than the entry price, while SL is higher than High price of the Bearish candle.
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Bearish Falling Three Methods
Bearish Falling Three Methods candle pattern forms on a downward trend.
After a Bearish candle, 3 connected Bullish small candles forms a 3-set candle pattern, which is followed by a Long Bearish candle.
The middle candle of the 3-set Bullish pattern can be Bearish, too.
Low price of the last Long Bearish candle should be lower than the Low price of the first Bullish candle.
Also, Close price of the last Bearish candle must be lower than the Open price of the first Bullish candle.
Trader can place a Sell order below the last Bearish candle.
If a trader considers the length of the Bearish candle as X, then TP price would be X pips lower than entry price, while SL is higher than the High price of the bearish candle.
Bullish Breakaway
Bullish Breakaway candle pattern can be formed on a downward trend and it identifies a reversal point.
Just like a Bearish Breakaway on an uptrend, this pattern has 3-set connected small candles but in a Bearish Format followed by a Long Bullish candle.
The middle candle in the Bearish 3-set pattern can be Bullish, too.
The last Bullish candle must have Close price higher than the Open Price of the first Bearish candle in 3-set pattern, also High price of the Bullish candle must be higher than High price of the Bearish candles.
Trader can place a Buy order with entry price higher than the High price of the last Bullish candle.
If trader considers the length of the Bullish candle as X, then TP price would be X pips higher than the entry price, while SL is lower than Low price of the Bullish candle.
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Bullish Rising Three Methods
Bullish Rising Three Methods candle pattern forms on an upward trend.
After a Bullish candle, 3 connected small Bearish candles form a 3-set candle pattern which is followed by a Long Bullish candle.
Middle candle of the 3-set Bearish pattern can be Bullish, too.
High price of the last Long Bullish candle should be higher than the High price of the first Bearish candle.
Also, Close price of the last Bullish candle must be higher than Open price of the first Bearish candle.
Trader can place a Buy order above the last Bullish candle.
If a trader considers the length of the Bullish candle as X, then TP price would be X pips higher than entry price, while SL is lower than the Low price of the Bullish candle.
Breakaway pattern is similar to Three Methods pattern, however, Breakaway is at the reverse region, while Three Methods is a continuation pattern.
That concludes this session, until next time and another session take care.