Horn Bottoms
Weekly chart is the favorite to get accurate forex signals , downward spikes
Use the weekly chart and locate two downward price spikes
separated by a week. The two spikes should be longer than similar
spikes over the prior year and be well below the low of the center
week. The formation should look like an inverted horn.
Abnormally long spikes result in better performance.
Clear visibility In a downtrend, the horn lows should be well below the
surrounding lows, especially to the left of the formation for several
weeks (or months). Usually, horns appear near the end of declines
but also happen on retraces in up trends (where visibility is less
clear to the left
Confirmation The pattern becomes a valid horn bottom when price closes above the highest high in the 3-week pattern.
Measure rule for forex signals to determine take profit accurately
Subtract the highest high from the lowest low in the horn pattern
and add it to the highest high. The result is the target price.
Identify Use the characteristics outlined to correctly identify a
horn bottom. The week after the right horn is key. Prices should
climb smartly and the weekly low should not be anywhere near the
horn low (in other words, the horn should still look like a horn and
not be encroached on by the succeeding price action).
Uptrends Some horns appear near the end of uptrends, so watch for the
trend to change.
Downtrends Horns will usually not mark the end of the downtrend, but they will be close. Prices might continue to drift down for $1 or so
(below the lowest horn low) and then head upward.
Stops If you can afford the loss, place a stop $1 below the lowest horn to
reduce the chance that a retest of the low will stop you out.
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