things to consider for the piercing pattern: A bearish trend must exist first. Harmonic pattern, but is nonetheless a very effective one. To give some context, the small box on the top right shows a view of the entire trend. A trend reversal trading strategy is not an easy task. Second image below is a double bottom on the CHF/JPY on the W1 time frame, indicating another reversal from the previous downtrend. The price alarm and breakout point in the direction of the trend should be placed just above the top of the flag for the trend continuation on this high probability trade and bullish chart pattern. The classic one comes from the Western world.
This is a hand drawn sketch/illustration of a bull flag chart pattern. The preferred thing to do here would be to set a stop at about 300 to 400 pips below the entry level. Double bottoms also occur. . In the first case, theres a strong downward move which halts abruptly. A head has two major moves: One in the direction of the trend.
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